if a public company is making investment in a pvt company and the pvt company gives investment money to director as loan whether section 295 is applicable on public company?
12 April 2010
Section 295 states that making directly or indirectly loan or giving guarantee to another for loan provide to director. Thus, investment do not fall under Section 295
However, intention of making investment is important. If the main intention to grant loan via Pvt Company than it may fall in Section 295 as it includes indirect loan to Director.
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