12 January 2016
dear sir p.ltd company is giving guarantee to trust for obtaining loan.one of the directors of the company are acting as trustees of a trust. Whether loan / gurantee given attracts sec.185 of companies act 2013.please clarify. pl.let me know any case law is available for this. thank u regards sreedhar
As per Section 185 company can't give loan to Director and person interested in directors. Person interested in directors doesn't cover trust. Therefore there is no restriction u/s 185.
CAclubindia
