REGARDING LOANS AND ADVANCE GIVEN TO UNRELATED PERSON

This query is : Resolved

suresh s. tejwani (Querist)
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22 August 2023 WHETHER PRIVATE LIMITED COMPANY CAN GIVE LOANS AND ADVANCES TO UNRELATED PERSON ?
WHETHER SUCH ACT IS WITHIN GUIDANCE OF COMPANIES ACT?

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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21 January 2024 Section 185(2) allows a company to give loans to any person/entity in whom any of the directors are interested in subject to certain conditions. The company must pass a special resolution in general meeting.

https://cleartax.in/s/section-185-companies-act-2013-checklist