26 August 2010
S.372A guides the company for intercorporate loans.I wanted to know whether a public co. can give loans to individuals without any restrictions or specific procedure?pls guide as per Companies Act,1956.
According to me it is possible through a board resolution u/s 292. But the same activity should be supported by the object clause of Memorandum of Association.
In case loan to director refer section 295 as suggested by expert.
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