CHARTERED ACCOUNTANT
1190 Points
Joined October 2012
A company can can give loan to a pvt ltd or ltd u/s 186 by the consent of all the directors subject to HIGH ER of the following:
1. 60% of its paid up capital, free reserves & securities premium account or
2. 100% of its free reserves & securities premium account.
If the loan amount exceeds the aforesaid limit then approval of shareholders needed by passing special resolution.