09 July 2015
whether a company recover loan amount from its employees in cash or can adjust the amount of loan from thier salaries. can employee paid his loan by bearing expenses of company?
if company paid loan to relative of one of directors then what are the possible ways to recover the loan from them????
Section 185 is applicable on a private company. However, recently private companies are exempted from section 185 subject to certain conditions as listed below.
Section 185 Shall not apply to a private company –
(a) in whose share capital no other body corporate has invested any money;
(b) if the borrowings of such a company from banks or financial institutions or any body corporate is less than twice of its paid up share capital or fifty crore rupees, whichever is lower; and
(c) such a company has no default in repayment of such borrowings subsisting at the time of making transactions under this section.
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