SEC 186 of the Companies Act 2013
This query is : Resolved
16 June 2023
As per Sec 186(2) (a)
No company shall directly or indirectly -
give any loan to any person or other body corporate;
exceeding sixty percent of its paid up share capital, free reserves and etc........................
As per Sec 186(11)(b)(ii)
"Nothing contained in this section except sub sec(1) shall apply
to any investment-
made in shares allotted in pursuant of clause (a) of sub-sec (1) of sec 62 or in shares allotted in pursuance of rights issues made by a body corporate."
Now My Query is -
The investing company intends to give further loan to other body corporate, then in computing the ceiling limits as per Sec 186(2) (a), whether all existing investments, if any, made in right shares as per Sec 186(11)(b)(ii), are to be included in the aggregate of the loans made by the company.
No company shall directly or indirectly -
give any loan to any person or other body corporate;
exceeding sixty percent of its paid up share capital, free reserves and etc........................
As per Sec 186(11)(b)(ii)
"Nothing contained in this section except sub sec(1) shall apply
to any investment-
made in shares allotted in pursuant of clause (a) of sub-sec (1) of sec 62 or in shares allotted in pursuance of rights issues made by a body corporate."
Now My Query is -
The investing company intends to give further loan to other body corporate, then in computing the ceiling limits as per Sec 186(2) (a), whether all existing investments, if any, made in right shares as per Sec 186(11)(b)(ii), are to be included in the aggregate of the loans made by the company.
22 July 2023
The ceiling limit of all the existing and current loans or guarantees. If the ceiling limit is triggered, the special resolution shall be obtained by the shareholders in the General Meeting. However the allotment made under Right issue shall not be included as it is already exempt as per section 186(11)(2)
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS 194-T applicability
- Fixe term employment
- Is any professional CA is here please reply
- GST ITC REVERSE
- Putting a heading on received mail
- TDS on TRUST
- Reprocessing of rectification order AY 2025-26
- Section 50-fixed asset-->building ceases to exist
- Consolidated financials
- RCM ISSUE ON RENT AND TRANSPORTATION CHARGES
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
