Shivshankar (a c.a student) (229 Points)
24 April 2014As per serction 185 no loan should be granted to Directors and Companies in which Director is Interested. The section applies with effect fro m 01.04.2014.
Now the question is that the loan is being carried forward from previous years i.e before 01.04.2014, then will Section 185 be applicable on it????
Vandana J Doshi
(Practising Company Secretary)
(12562 Points)
Replied 24 April 2014
Have to wait for such clarification from MCA.....
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 26 April 2014
No, it will not apply to existing loans as on 31.3.2014 provided these loans are in compliance with Companies Act 1956. However, if you give further amount in the account, CA 2013 will apply.
CAclubindia
