25 January 2017
Dear Experts, Pls clarify what is the criteria to granting Loan to its MD by company weather the company can grant interest free loan to MD. Also clarify the procedure be to followed in respect of Granting Loan to MD?
25 January 2017
As per section 185 of the Companies Act 2013, A Company can give Loan to MANAGING dIRECTOR OR WHOLE TIME DIRECTOR BY PASSING SPECIAL RESOLUTION AT A GENERAL MEETING AND LOAN SHALL BE GIVEN AS THE PART OF CONDITIONS OF SERVICES APPLICABLE TO ALL EMPLOYEES
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