whether loan made by holding co. to son of director of subsidiary co.?
whether there is any contravention of sec 185?
5 Replies
CA Amit Kumar
(Chartered Accountant)
(342 Points)
Replied 24 September 2017
Yes, as Son of Director of subsidiary company is related party.
PRAVESH JAIN
(EMPLOYEE)
(144 Points)
Replied 24 September 2017
but sir as per strict wordings of law only director of lending Co or holding co are specified person but loan by holding to director of subsisidiary isn't a specified person
CA Amit Kumar
(Chartered Accountant)
(342 Points)
Replied 24 September 2017
Section 185 restricts the company to provide loan to its Directors or any other person in whom the Directors are interested..
director is interested” means—
(a) any director of the lending company, or of a company which is its
holding company or any partner or relative of any such director;
director is interested” means—
(a) any director of the lending company, or of a company which is its
holding company or any partner or relative of any such director;
PRAVESH JAIN
(EMPLOYEE)
(144 Points)
Replied 24 September 2017
yes sir exactly....but it no where directly restricts holding company to provide loan to director or relatives of such directors
PRAVESH JAIN
(EMPLOYEE)
(144 Points)
Replied 24 September 2017
my number is 9754176464....for any clarity in my query
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