Sec 185 of co. act 13 apply ??

This query is : Resolved

sachin khurana (Querist)
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03 July 2015 Sir

Our company has given security deposit of employee for the house taken on rent & also paid 3 months advance rent.Afterwards co appointed that employee as director.
Now ques is whether Sec 185 i.e. loan to director apply here or not ?

Also give legal framework regarding this.

Pratik Shah

Pratik Shah (Expert)
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03 July 2015 No, Section 185 do not apply here because at the time of giving money, he was not a director.

Section 185 is restricting section not to do something. Hence, it can not be applied for the act done before when it was not applicable.