Please advise, whehter wholding company can finance its subsidiary company by virute of its agreement drafted prior to notification of sec 186 of comapnaies act 2013 in the form of inter corporate loan/a dvance ? or is there any other means of financing the subsidiary other than share application money?
16 June 2014
Loan from holding to subsidiary is allowed now through rules.
In your query section 185 loan to director is also very imp. Check the applicability of section 185. Further you can continue your transaction if the date of agreement is before the date of applicability of section 185 and 186.
Most of the companies following the same path to continue their old transaction.
Thank you for your immediate reply and understanding my intention.
As you pointed out, my intention is to verify the applicablity of sec 185 nd Sec 186 of CA 2013 in case of common directors? and is there any way out to escape from applicability of sec 185, Since some experts are saying usage of " save otherwise provided " at the begining of sec 185?? Assuming of date of agreement is after the date of applicability of sec 185 nd sec 186...
Thank you for your immediate reply and understanding my intention.
As you pointed out, my intention is to verify the applicablity of sec 185 nd Sec 186 of CA 2013 in case of common directors? and is there any way out to escape from applicability of sec 185, Since some experts are saying usage of " save otherwise provided " at the begining of sec 185?? Assuming of date of agreement is after the date of applicability of sec 185 nd sec 186...
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