Loan to a pvt. co. by a public co.

- Inter-corporate deposit is not a public deposit as per Companies (Acceptance of Deposits) Rules 2014.

- Sec.185 will not apply in this case.

- Lending co. has to ensure compliance of Sec.186; pass board resolution & file MGT.14

- Borrowing co. has to  ensure compliance of Sec.180; pass Board resolution & file MGT.14.

Thank u Sir for the reply.

Sir, I have one more query regarding this. Will there be any contravention of the Act ,if the private co. to which loan is to be given is a shareholder in the Lending Public Co. ?

Thank u Sir for the reply.

Sir, I have one more query regarding this. Will there be any contravention of the Act ,if the private co. to which loan is to be given is a shareholder in the Lending Public Co. ?

Will the Deemed Dividend provisions of The Income Tax Act, will get attracted in this case, when the pvt co. is a shareholder in the Lending Public co.??

Provisions of deemed dividend will apply only iff the conditions of Section 2(22)(e) of IT Act are attracted.  Pl check the same.