Section 185 of the companies act 2013 - clarification
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
02 January 2015
Directors of company A are neither directors nor Members in Company B. However one member holds 46% shares in company A and 99% in company B and He also a Director in Company B. Whether Company A can offer corporate Guarantee as per section 185 of the companies act 2013
CA Ayush Agarwal
(Expert)
02 January 2015
I don't see any consequences in that.
Please wait for other expert views.
Regards
CA Ayush Agrawal
Please wait for other expert views.
Regards
CA Ayush Agrawal
16 January 2015
if the person with common holding in both company A and B is also a director in the company A and B then there is a contravention of section 185 which may lead to a penalty not less then5 lacs but which may extend to 25 lacs... Otherwise not...the Point to notice here is Director and not the memeber
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