Shilpa Baid (Article and CA Final) (157 Points)
16 April 2014Membes
What would be position of existing intercorporate loans,guarantees and investment after 31.03.2014 i.e applicapability of Section 186 of CA 2013. Are existing things need to be regularised/complied or earlier special resolutions/compliances will prevail ?
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 16 April 2014
Existing loans etc. can continue till such time there is not even slight change in the terms & conditions. The moment there is any change, new provisions will apply. But it would be advisable to pass special resolution u/s 180 at the earliest. MCA has put a time limit of 1 year, i.e. upto 11.9.2014 on the validity of earlier resolution under CA 1956.
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