04 June 2011
there are two private companies in which directors are same and one company want to make loan to another,then what compliances are required to be fulfilled in this respect.
04 June 2011
Such transactions shall be approved by the General Body of both the companies. Such transactions fall u/s 297. These transactions shall be noted in the register maintained u/s 301. And shall be reported in the annual accounts.
06 June 2011
It should be noted that sec 295 would be applicable in case loan is given by a company to another pvt company in which director of first company is director or member of other company. As a result prior approval of CG shall have to be taken for such loan... I think sec 297 have no role in thisregard.... Refer sec 295, 283, etc Sumat Singhal
06 June 2011
It should be noted that sec 295 would be applicable in case loan is given by a company to another pvt company in which director of first company is director or member of other company. As a result prior approval of CG shall have to be taken for such loan... I think sec 297 have no role in thisregard.... Refer sec 295, 283, etc Sumat Singhal
Querist :
Anonymous
Querist :
Anonymous
(Querist)
15 July 2011
thanks prasad and Sumit,I alos think that sec 297 has no role in this matter but as per section 295, it is mentioned that sec 295 shall not apply to any loan made by a pvt co unless it is subsidiary oF PUBLIC CO and in my query a pvt co give loan to a pvt co so i think that only Board's approval is required in this matter, section 372A also not applicable on pvt co.