Section 185

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 May 2015 QUERY : Ref Sec 185 of TCA’2013
If a Wholly Owned subsidiary can give guarantee for loan given by bank to Holding Company.
FACTS :
No director is common director.
No director of holding hold shares in WOS
AND No director of WOS hold any shares in Holding Co.
If the transaction is permitted or restricted by The CA2013?
Pls advise.
Note : TCA’2013 is clearly spell about Holding – Subsidiary transaction, this query is for vice versa transaction.

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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22 May 2015 Loan given by Subsidiary company to Holding Company and Vice or Versa

The directors of subsidiary company do not hold any shares in holding company or is not directors of holding company. Section 185 is not attracted.

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