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Exploring the Legality: Interest-Free Loans from Parent Companies to Wholly Owned Subsidiaries



The matter at hand involves the permissibility of a company extending an interest-free loan to its Wholly Owned Subsidiary Company, as governed by the provisions of Section 186 of the Companies Act, 2013. The key considerations and relevant provisions are summarized below. Highlights of the P

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About the Author

company secretary

CS. Binit Thakur has a work experience of about 10+ years. He is a Bachelor of Commerce {B.Com (H)}, Bachelor of Law (LLB) and a Fellow Member of the Institute of Company Secretaries of India (ICSI). He has a good command of various fields of Corporate Laws, Drafting, Secretarial Compliances, Auditing, Due Diligence, S ... Read more


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