Sec. 295

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 July 2011 Dear Experts...

Can anyone explain me Sec. 295..
can company (both pvt.& pub.) give loan to Directors?
If Yes... is there any specific limit to give loan?

what is the procedure to take Central Government permission?

Sanjeeva Reddy

Sanjeeva Reddy (Expert)
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05 July 2011 Sec 295 is applicable to only Public Companies and to a private company which is a subsidiary of a public company.

The only condition is it has to get preior approval form Central Government and no limits on the loan amount.

Procedure to get Central Government approval is to file specified form with the ROC.

Guest

Guest (Expert)

07 July 2011 File the E-Form, Central government will give permission, if it deems fit.