Sec 185, sec 186

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 April 2014 as per new companies act 2013 a company cannot give loan or investment to director .

my client is director in 16-17 private companies . the companies have internal group transactions. ie loan given and taken . the compaines have purchased share in sister concern though the holding is less than 10%.
what should be done for these loans and investment according to the new companies act.

SHAKTI JINDAL

SHAKTI JINDAL (Expert)
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17 April 2014 Position so far is that if the loan is in accordance with a contract for a fixed period, it may be kept for such period else, in all likelihood, till any further clarification comes in this respect, the same will have to be repaid.