Intercorporate loan
This query is : Resolved
11 July 2014
Hello...
Is there any limit for a company to give loan to any other company.
Is there any limit for a company to give loan to any other company.
11 July 2014
As per Section 186(2) of the Companies Act, 2013 no company shall give loan to any other company exceeding sixty per cent of its paid-up share capital, free reserves and securities premium account or one hundred per cent of its free reserves and securities premium account, whichever is more.
A Company may give loan exceeding to the above limit by passing a special resolution.
By board resolution – upto 60% of paid-up share capital and free reserves or 100% of free reserves, whichever is more.
By special resolution – if exceeds the above limit.
A Company may give loan exceeding to the above limit by passing a special resolution.
By board resolution – upto 60% of paid-up share capital and free reserves or 100% of free reserves, whichever is more.
By special resolution – if exceeds the above limit.
12 July 2014
Agree with the opinion of expert.
No there is no monetary limit fixed by CA 2013 except specified percentage as given in section 186. However you are requested to refer section 180 in this behalf.
As per section 180, the Board of Directors of a company shall exercise the following powers only with the consent of the company by a special resolution, namely:—
Power to borrow money, where the money to be borrowed, together with the money already borrowed by the company will exceed aggregate of its paid-up share capital and free reserves, apart from temporary loans obtained from the company's bankers in the ordinary course of business.
Refer section 180(1)(c)
Thanks
No there is no monetary limit fixed by CA 2013 except specified percentage as given in section 186. However you are requested to refer section 180 in this behalf.
As per section 180, the Board of Directors of a company shall exercise the following powers only with the consent of the company by a special resolution, namely:—
Power to borrow money, where the money to be borrowed, together with the money already borrowed by the company will exceed aggregate of its paid-up share capital and free reserves, apart from temporary loans obtained from the company's bankers in the ordinary course of business.
Refer section 180(1)(c)
Thanks
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Deemed Capital Gain
- TDS on property - Form 141 query
- Exiting partner in partnership firm in gst portal
- F & O PROFIT REPORTING FOR AY 2026-27
- Type of Capital Gain
- TDS offline utility
- Due Date Clarity
- ITR-3 File/Error Found
- Taxability of credit in canara bank ET & T section (NRO)
- Difff in ais receipts and gst turnover
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
