25 April 2017
please share the details about exception to sec 185 in case of private limited company.
when a pvt ltd company can give loan to its director or a person in which director is interested.
26 April 2017
A Private Company which satisfies the following conditions w.e.f. 5th June 2015 would not invite restrictions contained in section 185: (a) In its capital no other body corporate has invested any money, i.e., its shareholder doesnot include any body corporate; (b) If the borrowings of the lending company from banks or financial institutions or anybody corporate is less than twice its paid up capital or Rs. 50 crores, whichever is lower; and (c) Such a company is not in default in repayment of such borrowings subsisting at the time of making transactions under this section
In such a case the private company can give loan to anyone without any restriction of section 185
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