Inter corporate borrowing between private limited company
This query is : Resolved
05 April 2016
Sir
Mr A is the Director of XYZ Pvt Ltc and ABC Pvt ltd.
Can XYZ Pvt Ltd give loan to ABC Pvt Ltd
Please reply Its urgent
Thanks
Mr A is the Director of XYZ Pvt Ltc and ABC Pvt ltd.
Can XYZ Pvt Ltd give loan to ABC Pvt Ltd
Please reply Its urgent
Thanks
05 April 2016
Yes,
With reference to MCA notification dated June 5, 2015 the following conditions shall be fulfilled:-
(a) in whose share capital another body corporate has invested any money;
(b) if the borrowings of such a company from banks or financial institutions or anybody corporate is less than twice of its paid up share capital or fifty crore rupees, whichever is lower;
(c) such a company has no default in repayment of such borrowings subsisting at the time of making transactions under this section
With reference to MCA notification dated June 5, 2015 the following conditions shall be fulfilled:-
(a) in whose share capital another body corporate has invested any money;
(b) if the borrowings of such a company from banks or financial institutions or anybody corporate is less than twice of its paid up share capital or fifty crore rupees, whichever is lower;
(c) such a company has no default in repayment of such borrowings subsisting at the time of making transactions under this section
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