borrowings under companies act, 2013

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

07 April 2014 Dear Sir,
Can a private limited company borrow from a private limited company in which 2 of the three shareholders of the first company are shareholders of the second company under the Companies Act,2013?

SHAKTI JINDAL

SHAKTI JINDAL (Expert)
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09 April 2014 Borrowing by a pvt. ltd. co. from another pvt. ltd. co. is not a public deposit. However, it will be subject to the provisions of Section 186 of the Companies Act, 2013. Further, directors need to give disclosure of interest under section 184.

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Querist : Anonymous

Querist : Anonymous (Querist)

18 July 2014 Thank you very much. Really obliged.

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