Companies act, 2013

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Pooja (Querist)
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27 June 2014 Sir,

There exists a controversy between sec 185 of the new act & sec 372A of the old act. In case of loans from & to Pvt. Ltd companies, which sec shall prevail?

Whether a Pvt. company give loan to another Pvt. company in which wife of director of the 1st company is a director i.e in case director has interest in the 2nd company?

Guest

Guest (Expert)

27 June 2014 whatever if the new section is notified then it will applicable only not the old one dear...

not only in one there are many contracdictory things coming out after introduction of new comp act

Pooja

Pooja (Querist)
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27 June 2014 yes the new section is always applicable over the old one but sec 186 which is new section replacing sec. 372A has not yet been made applicable so section 372A is still applicable.

How can the controversy between sections 185 & sec 372A be solved?

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Guest

Guest (Expert)

27 June 2014 i too had the same query.. wil waiting for my head office to revert on this.. lets c what happens

Pooja

Pooja (Querist)
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27 June 2014 Sir,
Please refer:
http://www.mca.gov.in/Ministry/pdf/CompaniesActNotification26March2014.PDF

Guest

Guest (Expert)

27 June 2014 i had already seen this....

Pooja

Pooja (Querist)
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27 June 2014 So this means sec 186 of the new act is applicable from 1.4.2014?

Guest

Guest (Expert)

27 June 2014 https://www.caclubindia.com/articles/faqs-on-section-186-of-companies-act-2013-20499.asp#.U61BmNKSytQ

go through this i think ur doubt can be removed dear

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Guest

Guest (Expert)

27 June 2014 yes from 1st april

all transactionn before that will be under 372a

Guest

Guest (Expert)

27 June 2014 http://taxguru.in/company-law/loan-investment-company-section-186-companies-act-2013.html

this one is also good to understand this

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Pooja

Pooja (Querist)
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30 June 2014 In the text of Sec. 185, interest of Director of lending company is explained as, "any private company of which any such director is a director or member"
So would this mean that Lender company can give loans to another pvt company if the directors of receiving company are relatives of director (since the directors of lending company are neither directors nor shareholders in receiving company)?