Companies Act, 1956

Section - 295 - Loans to directors, etc.

Loans to directors, etc.

295. (1) Save as otherwise provided in sub-section (2), no company (hereinafter in this section referred to as "the lending company") [without obtaining the previous approval of the Central Government in that behalf shall, directly or indirectly,] make any loan to, or give any guarantee or provide any security in connection with a loan made by any other person to, or to any other person by,—

         (a)  any director of the lending company or of a company which is its holding company or any partner or relative of any such director;

         (b)  any firm in which any such director or relative is a partner;

          (c)  any private company of which any such director is a director or member;

         (d)  any body corporate at a general meeting of which not less than twenty-five per cent .... To read the full section download the app from Google Play store