loans from group company

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Nilesh Mehta

Nilesh Mehta (Querist)
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19 June 2009 whether there is any restriction in receiving loan from group companies under the companies act.

Ankur Garg

Ankur Garg (Expert)
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19 June 2009 Hello Nilesh,

In case of inter corporate loan u/s 372A you have to obtain unanimous Board approval and in certain cases prior shareholders approval.

For limits of inter corporate loand refer section 372A.

Disclosure of interest by directors u/s 299 is also very important.

I would suggest go through the following sections of companies act, 1956 deeply:

295, 372A, 297, 299, 300.

Regards

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