divita agarwal (xyz) (99 Points)
31 May 2014it says that sec 295 doesnt't apply if the loan is given by a public co to another public co. But than it says that it applies if loan is given by a public co to a body corporate of which not less than 25% of the voting power is exercised by such director.
my question is that does the definition of body corporate includes "public co." too?
CA CS Roshan Begrajka
(Chartered Accountants)
(267 Points)
Replied 31 May 2014
CA CS Roshan Begrajka
(Chartered Accountants)
(267 Points)
Replied 31 May 2014
yes... Body corporate inculdes public company
The Companies Act has used an excluding definition for body corporate, defining it as "Body corporate" or "corporation" includes a company incorporated outside India but doesnot include- a. a corporation sole b. a co-operative societyregistered under any law relating to co-operative societies c. any other body corporate (not being a company company as defined in this Act), which the Central Govt. may, by a notification in the official gazette, specify in this behalf. Now, the concept of Corporation Sole is not defined anywhere in the Act. But concisely, apart from those excluded specifically, a body corporate means any entity that has its separate legal existence apart from the persons forming it. It enjoys a completely different legal status apart from its members. So, a body corporate shall include: a company, a foreign company, a corporation, a statutory company, a statutory body, an LLP, etc. and such bodies that have separate legal existence.
CAclubindia
