Company giving loan to its shareholder
This query is : Resolved
23 November 2018
Is there any restriction or Prohibition in a private limited company giving loans to its shareholder
Message likes :
1 times
23 November 2018
Yes... Restricted u/s 185 with 186 of CA. Read with both sections.
Message likes :
2 times
24 November 2018
Restrictions are :-
(a) In its capital no other body corporate has invested any money,
i.e., its shareholder does not include any body corporate;
(b) If the borrowings of the lending company from banks or financial institutions
or any body corporate more than or equal to twice its paid up capital or
Rs. 50 crores, whichever is lower; and
(c) Such a company is not in default in repayment of such borrowings subsisting
at the time of making transactions under this section
(a) In its capital no other body corporate has invested any money,
i.e., its shareholder does not include any body corporate;
(b) If the borrowings of the lending company from banks or financial institutions
or any body corporate more than or equal to twice its paid up capital or
Rs. 50 crores, whichever is lower; and
(c) Such a company is not in default in repayment of such borrowings subsisting
at the time of making transactions under this section
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST Regis.
- Should I include march foreign salary received in April in my income for FY 2023-24?
- Tax on capital gains revoked us 54f
- Inventory of finished goods
- HSN Details in IFF/GSTR-1 & in GSTR 9
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Sale of property furniture sale
- Filing of Form 10BB instead of Filing Form 10B
- Applicability of Ind As to associate of associate
- GST Registration Cancellation books of accounts asked by officer
- TDS Deduction Online Learing Platform
- Point (III) 9 of GSTR-9C
- As per our records, find the below outstanding demand(s)* and interest payable u/s 220(2):
- Regarding transaction th. credit card
- MIS MATCH OF INVOICE NUMBER
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
Trending Online Classes
CAclubindia
