Please let me know about Section 370 of Companies Act and their implications / compliances that need to be adhered while lending to Companies by a BANK.
Dharmesh
vivek
(CS)
(751 Points)
Replied 02 June 2010
Banking & Insurance Companies are expressly exempted in normal course of business from the provisions as per Section 370(2)(iii).
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 02 June 2010
Agree with learned member. Banking companies are exempted from section 372A under section 372A(8)(a)(i).
Kindly go through section 372A for the provisions connected with inter-corporate loans, investment, Guarantee and security. Section 372A is quite self-explanatory.
Section 370 is obsolete now.
Manmohan ACA, CS
(Chartered Accountant )
(14243 Points)
Replied 02 June 2010
| Originally posted by : Ankur Garg | ||
 |
Agree with learned member. Banking companies are exempted from section 372A under section 372A(8)(a)(i). Kindly go through section 372A for the provisions connected with inter-corporate loans, investment, Guarantee and security. Section 372A is quite self-explanatory. Section 370 is obsolete now. Thanks |
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