Section 185
This query is : Resolved
17 June 2016
If a listed Co. give guarantee to another company and after few months the director of guarantee Co. become director in guarantor Co., whether it is voilation of Section 185
19 June 2016
TO ATTRACT SECTION 185, IT MUST BE IN THE INTREST OF THE DIRECTOR PERSONALLY , THEN ONLY SECTION 185 WILL BE APPLICABLE OTHERWISE IT SHALL NOT BE APPLICABLE, IF IT ACTS AS A NOMINEE OF COMPANY.
aCCORDING TO SECTION 185, NO COMPANY SHALL PROVIDE LOAN OR GURANTEE TO DIRECTOR OR ANY OTHER PERSON IN WHOM DIRECTOR IS INTRESTED.
fOR EXAMPLE. ABC LIMITED PROVIDE LOAN OR GURANTEE TO MR A , WHO IS THE DIRECTOR OF BOTH ABC LIMITED COMPANY AND XYZ LIMITED COMPANY. THEN IN SUCH A CASE , SECTION 185 IS ATTRACTED AND IT IS THE VIOLATION OF SECTION 185
aCCORDING TO SECTION 185, NO COMPANY SHALL PROVIDE LOAN OR GURANTEE TO DIRECTOR OR ANY OTHER PERSON IN WHOM DIRECTOR IS INTRESTED.
fOR EXAMPLE. ABC LIMITED PROVIDE LOAN OR GURANTEE TO MR A , WHO IS THE DIRECTOR OF BOTH ABC LIMITED COMPANY AND XYZ LIMITED COMPANY. THEN IN SUCH A CASE , SECTION 185 IS ATTRACTED AND IT IS THE VIOLATION OF SECTION 185
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
- GSTR-1A How to update Invoice
- Excess salary payment.
- Stamp Paper for partnership firm change new income tax 2025
- TDS on Purchase of Immovable Property by NRI from NRI
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Capital gain from sale of house property
- When TDS on GST applied
- Before GSTAT- APL-02 Vs APL-04
- Annual return in Gst
- FORM 26A APPLICABILITY
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
