Company constructed building on leased premises of director
This query is : Resolved
05 November 2016
whether this will attract 185 of the companies act, can a company give financial support to construct factory building in directors land
Jatin Bajaj
(Expert)
08 November 2016
Yes, Company can give Financial assistance which are neccessary , normal or incidental to business or which are in the ordinary course of Business. But no Company shall give Loan, gurantee or securities which are for personal benifits of Directors. If it is neccessary for the benifit or development of Business, Company can give. Section 185 shall not be attracted in the above mentioned case.
08 November 2016
Thank you sir, how to show in books whether it is shown as fixed asset or lease amount, within how many year that can be amortised
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