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,
Loan to Directors
shehzad (accounts executive) (140 Points)
03 June 2009
CAclubindia
