Applicability of section 295

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CA, CS Kavit S Shah (Querist)
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26 September 2012 Dear Expert,

One of the Company has given loans to other body corporate & at the time of giving loan there were no common directorship in the Company but after few years the director's holding in lending co. has increased to 30%, So whether co. is now required to take approval of CG as per section 295(1)(d).

Thanks in advance

Ajay Mishra

Ajay Mishra (Expert)
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26 September 2012 Hi

Applicability of section 295 will be at the time of approval by Board will be consider whether director interested or not and not after that.

If you are again giving loan and then director is interested then applicability of section 295 apply.

CA, CS Kavit S Shah

CA, CS Kavit S Shah (Querist)
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26 September 2012 Thanks a lot sir

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