25 April 2017
Yes , as per the provisions of section 186 of the Companies act 2013, a private Company can accept the Loan from other Private Company upto 60% of paid up share capital , free reserves , securities premium or 100% of free reserves , whichever is higher subject to approval of Board of Director and if the limit exceeds the treshold limit, then by passing Special Resolution in General Meeting.Provided that the Directors of both the Private Company shall not be common
25 April 2017
Thank you
Section 186 have mentioned this limit for giving loans to body corporate...I didn't found any provisions for accepting the loans from body corporate in that section. Can u solve the doubt ?
CAclubindia
