27 March 2014
1. In case of the Indian subsidiary where there are common directors and such subsidiary is a private company then giving loan or guarantee is prohibited...
2. If the Indian subsidiary is not a private company then you have to check whether 25% share capital of the subsidiary is held by directors of holding company...
3.Same 25% share capital you will have to check in case of overseas subsidiary...
4. Also please read explanation (e) to section 185(1)...