Investment by a pvt company in partnership firm

487 views 1 replies

Nish006

Company Secretary

26 Points Joined October 2012

The company wants to invest by way of giving a corporate loan to a partnership firm in which a director is a partner. As per section 185 of Companies Act 2013, the company can not give loan to a firm in which a director is interested. Please correct me if i am wrong. Is there any way the company can provide loan by passing a special resolution or something? Thanks

Replies (1)

Sanjay

Associate

152 Points Joined April 2017

Private company has 3 conditions for exemptions check if ur company falls in all 3 conditions if yes den proceed with transaction.. Otherwise route it to a trust