Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Section 299

Save Share

This query is : Resolved

Sourav Agrawal (Querist)
Follow

26 November 2011 A private company has given a loan to a director is there any disclosure required u/s 299 of the companies act?

RG - A Helping Hand

RG - A Helping Hand (Expert)
Follow

26 November 2011 Section 295 regarding loan to dir is not applicable to a private company. However disclosure is required u/s 299. For giving loan a board resolution is required to be passed. In such BM dir should disclose his interest in the transaction.

RG

Message likes : 1 times

Charu Srivastava

Charu Srivastava (Expert)
Follow

26 November 2011
Loan to Directors is governed by Section 295 of the companies Act which is not applicable to private Company.

Section 299 of the companies act which is disclosure of interest is applicable to all the companies.Every Director before the end of financial year is required to disclose about his Directorship in the Company in Form 24 AA.

Message likes : 1 times

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