Section 185 applicabilty
This query is : Resolved
pradeep kumar
(Querist)
30 May 2014
According to section 185, Loan cannot be given to director or other person in whom the director is interested either its a pvt. co. & Public co.
Now if company has made loan to pvt. company in which director is a director but the same is repaid during the year 2013-14 and at the end of 31.03.2014 balance showing nil.
My question is even if the balance is nil, but the company has given to pvt. co. in which director is director, so the penalty liability will be arised to company & the director under sec 185 of comp, act 2013.
So, How can we escape from such liabilty.
Regards
Pradeep Kumar
Now if company has made loan to pvt. company in which director is a director but the same is repaid during the year 2013-14 and at the end of 31.03.2014 balance showing nil.
My question is even if the balance is nil, but the company has given to pvt. co. in which director is director, so the penalty liability will be arised to company & the director under sec 185 of comp, act 2013.
So, How can we escape from such liabilty.
Regards
Pradeep Kumar
Amol S Joglekar
(Expert)
30 May 2014
no any question of escape....it has already taken place....no need to sugarcoat the transaction..... under the disguise of something else
pradeep kumar
(Querist)
30 May 2014
not clear....please explain it again.
Thanks
Pradeep Kumar
Thanks
Pradeep Kumar
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