B S VISWANATH (www.financialtherapy.in) (184 Points)
11 July 2012Dear Friends,
Can a listed public comapny give loan to private company (which is not subsidary)? through light on any provisions of act
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 11 July 2012
Yes by complying with the provision of section 372A of the Co's act, the public co can grant loan to the pvt co. however the provision of the said section is N/a if the case is vice versa as pvt ltd co is exempted from the provisons of the section unless it's an subsidiary of a public co.
CAclubindia
