Advance to director for purchase of property

This discussion explores whether Non-Banking Financial Companies (NBFCs) can offer advances to their directors for property purchases. It examines different scenarios, including advances exceeding or falling below £5 crore, and the necessity of Board of Directors (BoD) approval. The advice suggests that such advances may be permissible depending on the company's Memorandum and Articles of Association, and adherence to Section 185 provisions, particularly if the advance is not from the NBFC's own 'OCB' (Other Business Capital).