Section 185, 186 of companies act

This query is : Resolved

jagdish ahuja (Querist)
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12 December 2014 KINDLY THROW LIGHT ON THE BELOW MENTIONED POINT AND OPINION OF THE BOARD:-

PVT LTD COMPANY AND PARTNERSHIP FIRM HAVING COMMON DIRECTORS and PARTNERS,
PROPERTY OF COMPANY IS MORTGAGED WITH BANKERS OF THE FIRM,AND FIRM HAVE AVAILED THE OD FACILITY FROM THE BANK,

FORM NO 8 FILED BY THE COMPANY ON 30/03/2011, WHEN FIRST TIME LOAN WAS AVAILED BY THE FIRM.

Whether provisions of section 185/186 of companies act 2013 regarding Loans /guarantee / security etc.... are attracted in this case.

further , since the partnership firm is having OD facility against property of the company, the OD facility is renewed every year, at the time of renewal the company does not comes in picture, only firm is required to complete the routine renewal of OD facility, further the limit of OD is same that was in 2011.

thus whether in this situation provisions of section 185 / 186 is required to be complied with.

SHAKTI JINDAL

SHAKTI JINDAL (Expert)
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13 December 2014 Factually renewal is happening even though the involvement of private limited company is not there, so the provisions of section 185 are attracted in true spirit.

Thanks,
Shakti Jindal