Inter Corporate Loan

This query is : Resolved

Bhavya (Querist)
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28 April 2011 Can Pvt Ltd Company provide & take loan from Public Ltd Co.?
Can Pvt Ltd Co give & take loan from Directors? &
What in case of Public Ltd Co.??

Jayashree S Iyer

Jayashree S Iyer (Expert)
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28 April 2011 Answers to your querries are -

Can Pvt Ltd Company provide & take loan from Public Ltd Co.?

Yes subject to provisions of Section 372A of the Companies Act, 1956.

Can Pvt Ltd Co give & take loan from Directors?

Yes, it can.

What in case of Public Ltd Co.??

It can take loan from directors, however they cannot grant any loan without CG approval as per provisions contained in Section 295 of the Companies Act, 1956.