25 November 2013
1. Can a pvt co. give the loan to a limited co. if its have a common director? 2.can a limited co. give the loan to limited co. if its have a common director? under section 185 they are related or not?
25 November 2013
Yes, it will cover under inter corporate loan and the provision of section 372A of the Companies Act, 1956 will be applicable in that case.
29 November 2013
Thanks Mr. Mishra for your prompt reply but still i have a some doubt please help us for resolve this:- My company gave a loan according to limit prescribed by section 372A of companies act, 1956 but according to section 185 of new act which it prohibit to give the the loan in which directors are interested than if any company give the loan to private company is prohibited but if loan has given to limited company in which the director have below 25 % holding than it is violation of the section 185 or not..
please suggest because in the act there is a Explanation.—For the purposes of this section, the expression “to any other person in whom director is interested” means— (c) any private company of which any such director is a director or member;
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