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Companies Act

Syed Ismail (8 Points)

23 January 2019

send the difference between section 184, 185 186 187 188 and 189

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Praveen Ravi (ICAI) (38 Points)
Replied 29 January 2019

I'm just giving an overview. This is not exhaustive.

184 can be divided into
184(1) which talks about General disclosure
184(2) talks about specific disclosure when contract is entered into.

185 is the Prohibitory section. It prohibits providing loan to director and other specified persons. Its worthwhile to note that loan given by the company to director is covered here. Not the loan received by the company.

Whereas 186 talks about Loan given by company to any person. 185 (covers only loan given to director and other specified person) 186 covers all loans given by the company. If a person is not prohibited under 185, then 186 is more of a procedural section.

188 is Related Party Transactions
189 Register of contacts entered into by the Co.

187 says all investments made my company should be held in its own name. (Some exceptions are provided)

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