Lnterest free loan granted by company to its employees

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 January 2017 Dear Experts,
. Please clarify. Is there any restriction on granting interest free loan to employee as per companies act. 2013.

Regds
AMIT

c.bakshi

c.bakshi (Expert)
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14 January 2017 no, the company cannot directly indirectly grant loan to its employees except in the case of whole time director or MD or the company having business in the ordinary course for more clarification Read Section 185

Querist : Anonymous

Querist : Anonymous (Querist)

16 January 2017 but sir as per MCA Notification 04/2015 stated that sec 186 is not applicable in form of granting loan to employee other then MD or WTD,

please clarify this issue

c.bakshi

c.bakshi (Expert)
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17 January 2017 it is subject to service agreement if it formed between the employer & employee

Querist : Anonymous

Querist : Anonymous (Querist)

17 January 2017 Sir. Yes Appointment letter was singed by employee in form of terms and conditioned thereof agreed by both employee and employer but In appointment letter Th given to employee is not mentions. Pls clarify in this scenario weather sec 185 & 186 of CA 2013 will not be applicable on granting interest free loan to employee or not,

Please clarify......

Querist : Anonymous

Querist : Anonymous (Querist)

17 January 2017 Pls consider :- but appointment letter does not contain the clause of loan given to employee