Interest free loans
This query is : Resolved
12 June 2014
Dear Sir,
Whether a holding company(Public company) can give interest free loans to its Subsidiaries / Wholly owned subsidiaries under Companies act 1956.
Thanks in advance
CA Rajeev Kumar
Whether a holding company(Public company) can give interest free loans to its Subsidiaries / Wholly owned subsidiaries under Companies act 1956.
Thanks in advance
CA Rajeev Kumar
13 June 2014
under companies act 1956 it was very much allowed. but now you need to worry about companies act 2013 where lending for to companies with common directorship is very restricted under section 185/186
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