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Loan and Advance to company by other company

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PRACTICE IN INDUSTRY
21 Points Posted on 09 July 2022
Hello experts

Can one company give Loan to other company or its Associated or subsidiary more than its share capital, free reserve and security premium?

Thank in advance sir/Mam
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On 09 July 2022 at 16:12 Report
Replies (6)
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Professional
1979 Points Posted on 09 July 2022
You Have To Pass Special Resolution In General Meeting
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On 09 July 2022 at 17:22
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Profession Business
28207 Points Posted on 10 July 2022
Not general meeting but extraordinary general meeting.
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On 10 July 2022 at 11:03
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Professional
1979 Points Posted on 11 July 2022
@ Sabyasachi It can be passed in AGM/EOGM whichever is early ...
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On 11 July 2022 at 11:03
Guest

Just to add to the points already made by the Professionals, as per section 186 the Special resolution must be passed 'prior' to giving the loan in any general meeting.

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On 12 July 2022 at 16:37
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Profession Business
28207 Points Posted on 14 July 2022

YES GENERALLY LOAN GIVING AND TAKING IS A NATURAL PHENOMENON. SO CHIRAG WHICHEVER IS EARLIER DOES NOT ALWAYS APPLY.

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On 14 July 2022 at 13:28
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Professional
1979 Points Posted on 14 July 2022
Ordinary Course In Business Only when certain criteria are fulfilled ,if the question relates to Nbfc/bank then there is no need for any approval even exceeding NW , or when the borrower is WOS which is not in this case ,so PRIOR member approval in general meetings is essential ....
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On 14 July 2022 at 13:38


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