Interest free loans

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Rajeev Kumar (Querist)
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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

Nikhil Kaushik

Nikhil Kaushik (Expert)
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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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