Section 185 of companies act 2013

This query is : Resolved 

Querist : Anonymous (Querist) 09 November 2013

Each Mr.X and Mr.Y are holding 50% share each in ABC Pvt.Ltd and XYZ Pvt.Ltd. There is no business in XYZ Pvt.Ltd and Rs.5 lacs are lying in bank A/C of this Company.My query is that
can XYZ Pvt.Ltd can give loan to ABC
if xyz ltd has given loan earlier to sept 2013 for period of 10 yrs, whether it is mandatory to return the loan-what is due date for returning back?
can XYZ pvt ltd can give share application instead of loan- provision applicable there off

Thanks in Advance

09 November 2013

Section 185 of the Companies Act, 2013 has been made operational from 12-09-2013.This sec is applicable for all companies.

Hence it not covered u/s 185. However, it should not be renewed & should be repaid on due date.

Querist : Anonymous (Querist) 09 November 2013

and suppose the co makes share application instead of giving loan what provisions would be applicable.?

Thanks in advance

09 November 2013

Proper document for share application money application should be made. But generally Shares should be allotted within 6-9 months from date of share application money recd. Hence period of share application money is short period.

Querist : Anonymous (Querist) 09 November 2013

Sir, is the max time limit 9 months in this case for share allotment?

09 November 2013

As per law there is no limit prescribed. But in practically, it is 6-9 months to issue share again share application money otherwise return share application money.

Venkat Ragavan (Expert)
23 November 2013

If it is foreign investment it will be with in 180 days.

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