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General query on accounts
CAN A COMPANY GRANT LOAN TO A DIRECTOR UNDER THE COMPANY ACT??PLEASE CLARIFY
Replies (4)
company cannot grant any loan to director as per the companies act 2013, sec 185 prohibits company to give loans to directors
As mentioned by the co act sec 185 (i) co shall not advance any loan to its directors and the person in whom director interested.
But exception under sec 185 (ii)(a) the giving any loan to its managing director or while time director:
As the part of the conditions of service extended by the co to all its employees; or
scheme approved by the members by a special resolution.
But exception under sec 185 (ii)(a) the giving any loan to its managing director or while time director:
As the part of the conditions of service extended by the co to all its employees; or
scheme approved by the members by a special resolution.
WHAT ARE THOSE EXCEPTION UNDER SECTION 185 UNDER WHICH A COMPANY CAN GRANT LOAN TO A DIRECTOR? PLEASE CLARIFY IMMEDIATELY. AS OUR DIRECTOR IS DEMANDING FOR LOAN OF RS. 2,00,000/- FROM THE COMPANY?
just type sec 185 in google.
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