Section 185 and its implications
This query is : Resolved
25 November 2013
Dear all,
As per the section 185 of the companies act, the companies cannot give corporate guarantee for loans taken by other companies as well for its Directors.
Then what will be the position of the existing loans sanctioned and the mitigations for the proposals already submitted to banks offering corporate guarantee.
What is the possible solutions and implications of the above section
As per the section 185 of the companies act, the companies cannot give corporate guarantee for loans taken by other companies as well for its Directors.
Then what will be the position of the existing loans sanctioned and the mitigations for the proposals already submitted to banks offering corporate guarantee.
What is the possible solutions and implications of the above section
25 November 2013
Section 185 will not appliable as on date. The MCA has issued circular no.18 dated 19.11.2013 by which section 372A will be operational.
25 November 2013
Ok Thanx sir for the early reply.
But i want to know its effect on the guarantees given by the companies for the existing loans after the notification of applicability.
What can be done in future as banks asks for corporate guarantees in almost every case.
But i want to know its effect on the guarantees given by the companies for the existing loans after the notification of applicability.
What can be done in future as banks asks for corporate guarantees in almost every case.
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
- Fixe term employment
- Is any professional CA is here please reply
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Putting a heading on received mail
- Section 50-fixed asset-->building ceases to exist
- Reprocessing of rectification order AY 2025-26
- FTS Taxable under 115A
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Gift Received from nonblood relative
- Experts need help
- 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
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
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
