Section 185 of companies act 2013
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
23 January 2014
What is the meaning of the term 'ordinary course of business' in section 185 of the Companies Act 2013.
CA SAYANTAN BASU
(Expert)
25 January 2014
Dear sir ,
This term is applicable for banks and FIs whose business main objective is to give loans and advances .... the ordinary course of business means what is ur main business .... main business of the banks is giving loans and advances .So what section 185 by the term of ordinary course of business implies that if you have a borrowing and lending business then in course of that if you give loan to any director then subsection 1 of section 185 will not be applicable ....
This term is applicable for banks and FIs whose business main objective is to give loans and advances .... the ordinary course of business means what is ur main business .... main business of the banks is giving loans and advances .So what section 185 by the term of ordinary course of business implies that if you have a borrowing and lending business then in course of that if you give loan to any director then subsection 1 of section 185 will not be applicable ....
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