Section - 296 - Application of section 295 to book debts in certain cases
[Application of to book debts in certain cases.296. shall apply to any transaction represented by a book debt which was from its inception in the nature of a loan or an advance.]
48. Substituted by the Companies (Amendment) Act, 1960. For the original section, refer
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;.... To read the full section download the app from Google Play store
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