Querry related to sec. 185 of ca,2013 "loan to a company"

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 June 2014 My query is--
What if I give a Loan to a Company in which there is no related director but there are shareholders who are related.
For example:
there are 2 companies A & B
In Company A there are Mr. Y & Mr.Z directors & Shareholders
In Company B there are Mr. U & Mr. V are directors and Mr. W and Mr. X are shareholders.
What If Company "A" give loan to Company "B" in which relative of directors (Of co.A) Mr.U & Mr.V are shareholders i.e. Mr. W & Mr. X (Of Co.B).

Pursuent to Section 185
Explanation.—For the purposes of this section, the expression “to any other person in whom director is interested” means—
(a) any director of the lending company, or of a company which is its holding company or any partner or relative of any such director;
(b) any firm in which any such director or relative is a partner;

(c) any private company of which any such director is a director or member;

(d) any body corporate at a general meeting of which not less than twentyfive per cent. of the total voting power may be exercised or controlled by any such director, or by two or more such directors, together; or
(e) any body corporate, the Board of directors, managing director or manager, whereof is accustomed to act in accordance with the directions or instructions of the Board, or of any director or directors, of the lending company.

Querist : Anonymous

Querist : Anonymous (Querist)

11 June 2014 Pls experts reply urgently

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