Kitty (Manager) (24 Points)
22 March 2010Dear All,
Pls let me know:
1) Is Sec 295 of the Companies Act to be read as applicable to " Directors of the Lending Company"?
OR
2) Is Sec 295 of the Companies Act to be read as applicable to " when Lending Company is advancing loan to "B" and Security/ Guarantee is provided by "A" ?
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 22 March 2010
Kindly check the example below:
If company A is advancing loan to company B then in that case company A is the lending company. Here company A cannot provide loan to its director (Lending Company’s director) through company B or through other associates as mentioned in section 295.
Sanjay Singh Rana
(CA)
(208 Points)
Replied 22 March 2010
hi kitty
Section 295 of the Companies Act regulates grant of loans by a public company (and its subsidiaries), barring exempted categories, to its directors, their relatives and the firms and companies in which they are interested, as mentioned in the said section. Therefore, the section provides that a company cannot make a loan, give guarantee or provide security in connection with such a loan without obtaining the previous approval of the central government.
this section is applicaple to only directors of company and their relatives and the firms and companies in which they are interested,
hope this will solve your query :)
take care
kamakshi s iyer
(company secretarial assistant)
(30 Points)
Replied 22 March 2010
please provide me board resolution and all other resolution and explanatory statement for section 372A AND 295
Regards
kamakshi
kamakshi s iyer
(company secretarial assistant)
(30 Points)
Replied 22 March 2010
please provide me board resolution and all other resolution and explanatory statement for section 372A AND 295
Regards
kamakshi
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 22 March 2010
Find attached herewith a useful file containing 4 different companies 372A resolutions with Explanatory statements.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
