A company has advanced loans to persons covered under section 2(22)(e). So it contravenes this section. It also contravenes section 295 of the Companies Act.
My question is:
1) What can be done to save a company from the repercussions of violation of both this sections.
2) Is there some way out legal or other, so that company escapes the penalties, etc. from the violations.
Please help by replying ASAP
Thanks & Regards,
Menu
Loan to Directors
Replies (1)
Hi...
Compounding of offence u/s 621A would be an option available as far as violation of company law is concerned. Offence u/s 295 is very much compoundable.
Regards
Recent Topic
- PF withdrawal and tax liability
- Sale of Goods or Services?
- ITR form query
- Credit against paud RCM on rent
- Dividend difference in 26AS, AIS, TIS
- 194JB INCOME
- Filing ITR3 where income under section 44AD with L
- What is superannuation fund
- GST Refund of input services under Inverted Duty S
- Dividend Reporting
Related Topics
CAclubindia
