Subsidiay company

priyanka gupta (CA) (58 Points)

08 June 2017

can subsidiary company give loan to its holding company

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3 Replies

Shashikant Sharma (Company Secretary ) (1253 Points)
Replied 08 June 2017

A holding company can provide loan to its wholly owned subsidiary but vice versa is not exempted in case both the companies have common directors.

Vidnya (Practicing CS) (82 Points)
Replied 09 June 2017

I guess a subsidiary can give loan to its holding company, if it does not attract any of the restrictions provided under section 185.

Sanjay (Associate) (152 Points)
Replied 13 June 2017

yes a subsidiary company can give loans but it should be compliant to section 186 and 185

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