I want to confirm whether prohibition related to loan, guarantee, security also covers the following persons other than lending company's director, its holding company's director, partner or relative of lending company director, any firm in which lending company' s director or his relative is a partner:
1.Partner or relative of director
of holding company
2.Any firm in which holding Company's director or his relative is a partner.
Reason being the provision mentions any such director after descripttion of director of lending company and its holding company's director.
provision given exemption to wholly owned subsidiaries only.
Loan cannot be given to Holding Company. If loan cannot be given to Holding company, my understanding is it cannot be given to it's Directors of the holding company and their relatives and partners
CAclubindia
