Hi
Can a subsidiary Company advance loan to its Holding Company where there are common directors. Is it violation of section 185 of Companies Act,2013??
4 Replies
divya
(Miss )
(118 Points)
Replied 11 April 2018
yes it is violation of section as this is covered in "a co in which director is interested"
darshan
(ca)
(22 Points)
Replied 11 April 2018
No it's not violation if it's in ordinary course of business
Chetna Chhipa
(0 Points)
Replied 12 April 2018
if holding company give loan/guarantee/security to its wholly owned subsidiary company then sec 185; is not applicable
Chetna Chhipa
(0 Points)
Replied 12 April 2018
so in this it was violation of sec 185 of the companies act 2013
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