There are two private companies with same directors. Both are sister concerns but not subsidiary.
- Can one company give loan to another?
- Is there any restriction on loan amount?
- The company to which the loan has been given is in loss. What are the implications if that company is converted to a 100% subsidiary by using the loan given.
Thanks for your help.
Raj
This will be treated as loan to directors which is prohibited as per 185 of the Companies Act, 2013 (which is already notified).
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