Sec 185 0f companies act

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2013 Dear Experts,

Can any one provide the implication of the Sec 185 of companies act on the following transactions/cases.

1. Is Sec 185 attracts on transactions fund transfers between Trust and Pvt ltd company, where Trust and Pvt ltd co having same directors/controlling in both the entities

2. Is Sec 185 attracts only on Loan given to directors ? will it have any implications on Loan taken from Directors by Pvt ltd co?

3. Is there any liability arises on loans u/s 185 where loans given to pvt co and interest as per the bank rate charged.

Regards

Ajay Mishra

Ajay Mishra (Expert)
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11 November 2013 Section 185 does not talk about trust. So we can not says anything on it.

It is silent on trust as details in explanation of section 185(1).