Section 185 under companies act, 2013
This query is : Resolved
13 February 2016
Dear Sir,
MCA has exempted private companies from compliance with provisions of section 185 of Companies Act, 2013. Subject to fulfilment of three conditions :
1) no body should be member of a private company
2) the "borrowings" of such private company should not exceed twice of its paid up capital or 50 Crore whichever is lower,
3) private company should not make any default in repayment of loans.
Whether in condition no. 2 above the word "borrowings" means total borrowing including term loans and working capital or only term loan ????
Kindly give clarification on this points.
Regards,
Sachin
MCA has exempted private companies from compliance with provisions of section 185 of Companies Act, 2013. Subject to fulfilment of three conditions :
1) no body should be member of a private company
2) the "borrowings" of such private company should not exceed twice of its paid up capital or 50 Crore whichever is lower,
3) private company should not make any default in repayment of loans.
Whether in condition no. 2 above the word "borrowings" means total borrowing including term loans and working capital or only term loan ????
Kindly give clarification on this points.
Regards,
Sachin
13 February 2016
Borrowing will include " all loan from Banks, Financial institutions, and body corporates"
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