Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

Sec 372a still applicable

CA Ayush Agarwal (Kolkata-Pune-Mumbai) (27186 Points)

20 November 2013

Section 372A of Companies Act, 1956 Still Applicable untill n unless sec 186 will not be notified.

PFA the circular issued by department.

Reply
Follow
Share

4 Replies

Ajay Mishra (Company Secretary) (74337 Points)
Replied 20 November 2013

Thanks Ayush for updating...............

Keep Sharing.............

Upgrade to CAclubindia Pro. Subscribe Now!

K.MURALIDHAR AYYANGAR (GM Finance and Accounts) (22 Points)
Replied 20 November 2013

What about private limited companies? 372A is applicable only to public ltd co and to a pvt ltd co which is subsidiary of pub ltd co. Does section 185 of Co act 2013 applicable to pvt ltd co? Is earstwhile sec 295 is also restored until 186 (2013 Act )is applicable applicable?

Sneha (Company Secretary) (1594 Points)
Replied 21 November 2013

Please answer my query. Sec 185 of Companies Act, 2013 also includes "Company can neither take loan nor give loan/security and gaurantee". No limit prescribed in section 185 as it is covered by Sec 186 of Companies Act, 2013 (not yet effective).

Sec 372A of Companies Act, 1956 is applicable only to public company and pvt co subsidiary of public company.

So provision of sec 185 of CA, 2013 and Sec 372A of CA, 1956 is contradictory in terms of giving loan/gaurantee/security ??

R.V.RAO (SERVICE) (4125 Points)
Replied 03 February 2014

Ms.snehaji,

you raised a good issue.

the govt is seized of the problem because several lenders and borrowers in corporate sector are into trouble bacause of new sec 186 not made effective and , sec 185 was effectice but incomplete.

so clarification was given that till the new sec 186 is made effective, old sec 372A provisions are applicable.