Loan to individual
This query is : Resolved
CA Namrata Shetty
(Querist)
26 August 2010
S.372A guides the company for intercorporate loans.I wanted to know whether a public co. can give loans to individuals without any restrictions or specific procedure?pls guide as per Companies Act,1956.
Aditya Maheshwari
(Expert)
26 August 2010
Restriction to grant loan is mentioned in Section 295. Read that section.
Ankur Garg
(Expert)
26 August 2010
Yes
According to me it is possible through a board resolution u/s 292. But the same activity should be supported by the object clause of Memorandum of Association.
In case loan to director refer section 295 as suggested by expert.
Thanks
According to me it is possible through a board resolution u/s 292. But the same activity should be supported by the object clause of Memorandum of Association.
In case loan to director refer section 295 as suggested by expert.
Thanks
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