Mr. A and Mr. B are directors of A pvt ltd and B pvt ltd.
Can A pvt ltd provide loan/Guarantee/ Security to B pvt ltd???
please explain...
2 Replies
Naveen Kumar
(10 Points)
Replied 14 June 2020
Yes, can provide subject to the conditions provided in section 185(2) of the Companies ACT, 2013.
Harish choursiya
(Student cs professional )
(249 Points)
Replied 14 June 2020
As such there is no restrictions for grating loan, made investment and providing guarantee to other corporate, individual etc. However, this shall be fall under ambit of
A. Inter corporate loan section 186 and
B. it is also under related party transaction section 188
So accordingly comply both the section at the same time...
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