Sneha (Company Secretary) (1594 Points)
18 September 2013Presently provisions of Section 372A of Companies Act 1956 relating to Inter-corporate loans and investments are not applicable to private companies
However, now corresponding new Section 186 of Companies Act 2013 relating to Loan and investment by company. (which is yet to be made effective) has taken away such exemption from private companies Compliance on the part of private companies will increase substantially.
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 18 September 2013
Also, Sneha, as pointed out by learned Mr. P.C.Agrawal in this forum,private companies cannot give loans to directors except under special cases under section 185.
Regards,
Ajay Mishra
(Company Secretary)
(74337 Points)
Replied 18 September 2013
Good ovservation Sneha......
The private company ans wholly owned subsidiary words has be deleted under section 186 of new CA, 2013 in comparission to section 372A of the CA, 1956.
Sneha
(Company Secretary)
(1594 Points)
Replied 19 September 2013
Yes, Dipjyotiji..absolutely..
Thanks Ajayji.. :)
CAclubindia
