Company providing interest free loan from its OD account

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Chartered accountant
172 Points Posted on 21 August 2023

Can a private ltd. company provide interest free loan to other person from its Overdraft Bank account?

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On 21 August 2023 at 11:48 Report
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This discussion addresses whether a private limited company is legally permitted to provide interest-free loans to individuals using funds from its overdraft (OD) account. The consensus points to this being prohibited, with a specific reference to Section 185 of the relevant company law, particularly subsection 185(4), which governs such transactions.

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"Do the Right Thing...!!!"
128157 Points Posted on 21 August 2023
No... Company Can't give loan.
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On 21 August 2023 at 14:40
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Chartered accountant
172 Points Posted on 21 August 2023

Can you please quote the section?

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On 21 August 2023 at 15:26
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"Do the Right Thing...!!!"
128157 Points Posted on 21 August 2023
Please go through sec 185
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On 21 August 2023 at 15:34
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"Do the Right Thing...!!!"
128157 Points Posted on 21 August 2023
Originally posted by : RAJA P M
Please go through sec 185

with 185(4)

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On 21 August 2023 at 16:40

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