Loan between the companies of same mgmt

Shridhi Jain (Company Secretary) (1678 Points)

09 June 2011  

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