Section 295 (companies act 1956)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 January 2014 Hi,

My query is that, can holding company (Public Co.) give a loan to its subsidiary or wholly owned subsidiary Company (Public Co.) or not as per the provisions of Companies Act, 1956?

All view are welcum.

Regards

Raunak Jain

Raunak Jain (Expert)
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16 January 2014 As per companies act 1956 section 295 is not applicable on a loan made by a holding company to its subsidiary company, however provisions of section 372 A shall apply,

Querist : Anonymous

Querist : Anonymous (Querist)

16 January 2014 Sir,

Thanks for the valuable suggetion.

Can a wholly owned subsidiary or subsidiary company (Public Co.)give loan to its holding, in case of common directorship?

Regards

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