Section - 370 - Companies Act, 1956

Section - 370 - Loans, etc., to companies under the same management

Loans, etc., to companies under the same management.

370. (1) No company (hereinafter in this section referred to as "the lending company" ) shall—

(a) make any loan to, or

(b) give any guarantee, or provide any security, in connection with a loan made by any other person to, or to any other person by,

any body corporate

[***], unless the making of such loan, the giving of such guarantee or the provision of such security has been previously authorised by a special resolution of the lending company :

[Provided that no special resolution shall be necessary in the case of loans made to other bodies corporate not under the same management as the lending company where the aggregate of such loans does not exceed

[such percentage of the aggregate of the subscribed capital of the lending company and its free reserves as may be prescribed]

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