We want to use the surplus amount in our company and we all 4 directors of the company are in blood relation. Can the company give an unsecured loan to a 3rd person (say my friend) and a director takes back it from friend in shape of an unsecured loan? Does this violates the provisions of the new companies act ? Or any other method to use the surplus amount in the company
29 April 2019
In my humble opinion, it will be violation of section 185 of the companies act. Thanks and Regards CA Shubham Sharma shubham.vnv@gmail.com 9462302922
CAclubindia
