Dear all,
Request to advice pl. My query isthat a subsidiary of a Holding co. is giving security to bank for loan availed by holding Co. Whether its attract Sec 295(2) of Companies Act, 1956? If yes pl. advise and give comment.
Rajiv (Properitor) (30 Points)
18 April 2012Dear all,
Request to advice pl. My query isthat a subsidiary of a Holding co. is giving security to bank for loan availed by holding Co. Whether its attract Sec 295(2) of Companies Act, 1956? If yes pl. advise and give comment.
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 18 April 2012
Sir….in your case exemption u/s 295(2) is not available bcoz here subsi company is acting in favour of its holding company.
Rest is dependent on the position of board of directors of both the companies, any common director and status of the companies whether they are public or private?
Tx
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