Section 295 of Companies Act, 1956

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 April 2011 In a listed company, whether the approval of Central Government is required for the Loan to be given by the company to its Whole Time Director?

If yes, then what eform is required to be filed for Central Govt's Approval?

udit sharma

udit sharma (Expert)

20 April 2011 Yes...the provisions of Section 295 of the Companies Act, 1956 are very much applicable to all Public Limited (Whether Listed or not) and hence the approval of Central Government has to be obtained by making an application in E-form 24AB of the Companies(Central Government's) General Rules and Forms, 1956.

You can download the said E-Form from www.mca.gov.in.

Querist : Anonymous

Querist : Anonymous (Querist)

20 April 2011 Thanks for the reply
while filing the form 24AB it ask for CIN no. of the borrowing company whereas in case loan to director no CIN no. can be provided..........kindly advise in the matter

udit sharma

udit sharma (Expert)

21 April 2011 Dear...

That is not applicable in your case, where ur Company is giving a Loan to its Director.

That field will have to be filled in when Your Company is making a Loan to a Private Company in which the Director of the Company/Director of the Holding Company of Your Company is a Director or member.

Similarly in the next field in that Form, name of Borrowing Firm is asked for, which has to be filled in case ur Company is making a Loan to a Firm in which the Director of the Company/Director of the Holding Company or relative of any such Director is a Partner.

God Bless

CS Udit Sharma

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now