20 April 2011
In a listed company, whether the approval of Central Government is required for the Loan to be given by the company to its Whole Time Director?
If yes, then what eform is required to be filed for Central Govt's Approval?
20 April 2011
Yes...the provisions of Section 295 of the Companies Act, 1956 are very much applicable to all Public Limited (Whether Listed or not) and hence the approval of Central Government has to be obtained by making an application in E-form 24AB of the Companies(Central Government's) General Rules and Forms, 1956.
You can download the said E-Form from www.mca.gov.in.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
20 April 2011
Thanks for the reply while filing the form 24AB it ask for CIN no. of the borrowing company whereas in case loan to director no CIN no. can be provided..........kindly advise in the matter
That is not applicable in your case, where ur Company is giving a Loan to its Director.
That field will have to be filled in when Your Company is making a Loan to a Private Company in which the Director of the Company/Director of the Holding Company of Your Company is a Director or member.
Similarly in the next field in that Form, name of Borrowing Firm is asked for, which has to be filled in case ur Company is making a Loan to a Firm in which the Director of the Company/Director of the Holding Company or relative of any such Director is a Partner.
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