Loan between the companies of same mgmt

333 views 1 replies

Members,

Can a public co. give loan to private company where one of the directors of both companies are same. In pub. co he is as WTD or MD while in private company he is one of the two directors. Sec. 370 is now not in force while sec 327A is silent about this.

Kindly explain.

Thanks

Replies (1)

company has to get prior central government approval as per sec 295 and has to get unanimous board approval in board meeting as per sec 372A


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register