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
- About TDS & Income Tax
- Tax on Deemed Capital Gain
- Scrutiny and reopening of past returns
- F & O PROFIT REPORTING FOR AY 2026-27
- Booth for sales promotion
- Type of Capital Gain
- Regarding ITR filing with more value than showing in AIS/TIS
- ASMT-10 received from A O
- Rental income of jointly held property
- Accounting with Claude
- Difff in ais receipts and gst turnover
- ITR-3 File/Error Found
- Exiting partner in partnership firm in gst portal
- Taxability of credit in canara bank ET & T section (NRO)
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
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
