A public company is giving loan to a body corporate in which a director of such public company is having 26% of total voting power.
1) can company give loan to such body corporate ?
2).do such director need to disclose its interest..?
No company can give loan to its Directors unless it is a whole time usual activities of the company to provide loans or to give loan to its wholly owned subsidiary.
Yes, Directors shall have to disclose such interest
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