Intercorporate Loan

K Mohamed Ibrahim (Company Secretary) (104 Points)

28 October 2010  

Dear Professional Colleague

 

A ltd want to give intercorporate loan to B ltd. A ltd having enough reserve to takecare of Sec 372A.

 

 

A Shareholding

Unlisted public Company

B Shareholding

Listed Company

Board of Directors

Mr.A 5.00

Mr.B 4.00

Mr.C 0.00

Mr.D 0.00

 

Mr.A 7.18%

Mr.B 2.51%

Mr.C 0.00

Mr.D 0.05

Mr.E 0.00

Mr.F 0.00

Common Directors

A,B,C,D

A,B,C,D

Promoter cum Director

A,B,C

A,B,C

 

Apart from the above, one common shareholder (Z ltd OCB ) is holding 49% in B ltd and 46% in A ltd.

 

Mr.A is holding 100% shares of Z ltd and Mr.A is a Director of Z ltd.

 

Please give valuable points in respect to companies act and income tax act angle, which will help us to think before ink.