12 January 2015
Company has given guarantee for housing loan taken by Working Directors. What is the procedure to be followed u/s-185 of the Companies Act,2013? Can company give guarantee u/s-185 for housing loan ??
15 January 2015
Section 185 prohibits any company from giving loans, guarantees and securities in favor of its directors or to any other person in whom the director is interested in.
Existing loan/guarantee/security provided before 12th Sep. 2013 is not affected by above provisions. However, it should not be renewed & should be repaid on due date.
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