Inter corporate loans

Others 450 views 2 replies

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

Replies (2)
Yes in your case both the companies are pvt company.. and sec 372A is not applied to pvt company...

This will be treated as loan to directors which is prohibited as per 185 of the Companies Act, 2013 (which is already notified). 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register