Sabu Joseph (Branch Manager) (619 Points)
30 December 2015Dear all
"X" is a Ltd Company."A" & "B " are the Directors of X Ltd. Both the Directors formed a Partnership Firm called "Y".
My question is "CAN THE X LTD ACCEPT SECURED OR UNSECURED LOAN FROM PARTNERSHIP FIRM "Y" UNDER RPT".
Kindly advice in detail, I asked this question somany times but no answer from anybody
Sabu v Joseph,9349973685,sabuvjosephpkd @ gmail.com
SUNIL KUMAR JAIN
(PRACTISING COMPANY SECRETARY)
(187 Points)
Replied 03 January 2016
Dear Mr Sabu,
For an Unlisted Company RPT are governed by Section 188 of the CA,2013. If you go through this section carefully , you would notice that there are seven kinds of transactions which are covered in this section. Transaction of giving or accepting loans has not been listed in any of these seven clauses. So this is not a subject matter of RPT. So consider provisions other than Section 188 for the said transaction.
Regards,
Sunil K Jain
Practising Company Secretary
sunil.jain.sk @ gmail.com
CAclubindia
