What is a maximum rate of interest at which one public company can give loan to other public company ? Is it 12.50% ( These two companies are not related to each other )
swapnil dabke (senior executive) (320 Points)
29 May 2013What is a maximum rate of interest at which one public company can give loan to other public company ? Is it 12.50% ( These two companies are not related to each other )
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 29 May 2013
As per Section 372A(3) of Companies Act minimum interest at bank rate has been prescribed. There is no maximum ceiling.
swapnil dabke
(senior executive)
(320 Points)
Replied 29 May 2013
ACCEPTANCE OF DEPOSIT RULES APPLIES TO THIS CASE ?
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 30 May 2013
It is not a 'deposit' as per Rule 2(b)(iv) of Companies (Acceptance of Deposits) Rules 1975.
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