inter company loan ?
This query is : Resolved
Vijay Parmar
(Querist)
21 May 2016
we have two company .. both company have same management ..
can i take money from other company as a loan or temporary finance ?
Jatin Bajaj
(Expert)
23 May 2016
According to section 186(2), Company can give loan to other Company or body Corporate not exceeding 60% of its Paid up Share capital+ Free Reserves+ Securities Premium or 100% of its Free Reserves+ securities Premium, whichever is more.
But if Company gives the loan exceeding the limits mentioned under sub section 2 , Prior approval by means of Special Resolution passed in General Meeting is necessary.
But if Company gives the loan exceeding the limits mentioned under sub section 2 , Prior approval by means of Special Resolution passed in General Meeting is necessary.
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