Section 372 and 372(a)

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Querist : Anonymous

Querist : Anonymous (Querist)

20 June 2012 Please tell me the difference between section 372 and 372A Register under Companies Act 1956....
Its urgent ...
Also provide me the format of the same :)

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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21 June 2012 Section 372 imposes some restrictions on purchase or acquisition of shares of any body corporate. Whereas Section 372A imposes some restrictions on giving loans by a company to bodies corporates. Section 372A applies to inter-corporate loans, guarantee and investments by a company.

By the Companies (Amendment)Act, 1999, Section 372 has been rendered inoperative.