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Article on loan to director under company act, 2013

CS Divesh Goyal (Practicing Compnay Secretary) (50010 Points)

28 April 2014

If company have already given loan to directors under previous companies act than what they have to do in new act.

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2 Replies

Vandana J Doshi (Practising Company Secretary) (12562 Points)
Replied 28 April 2014

anonymous II (director) (60 Points)
Replied 13 May 2014

Respected Sir,

Sub: inter corporate loan by NBFC

AN NBFC takes inter corporate loan from a private limited/limited concern say company no. 1 @ 12% p.a. and gives it to another private limited/limited say company no. 2 @ 15.30 p.a. Suppose company no. 2 is associate/subsidiary/holding company of No. 1 company or any director of company No.1 is interested in company no. 2 or vice versa. Now query no. 1. is there any violation of rules according to companies act 2013 in giving loan to company no 2 by NBFC by taking loan from company no. 1 ? Now query no. 2 is there any violation of rules according to companies act 2013 if NBFC takes guarantee also from company No. 1 for giving loan to company no. 2?

Thanks,