Loan to a private company

Sagar (AM) (123 Points)

26 August 2015  

Dear All,

Can Private company give loan to another pvt. company in which 2 directors are common. If the giving company is satisfying all 3 condition of 5th june circular and also is a member of company to which loan is being given.

The company which is receiving loan is not satisying 3 conditions. 

Please suggest.