MANISH (Student CA Final ) (38 Points)
15 January 2019
Ruchika Somani
(Coaching and Practice in Tax Audit Law.)
(4429 Points)
Replied 15 January 2019
Section 185/186 speaks about loans. Subsidiary company cannot hold shares in parent company but since debenture is a debt and not share so may be holding company may issue debentures to subsidiary.
MANISH
(Student CA Final )
(38 Points)
Replied 15 January 2019
Ruchika Somani
(Coaching and Practice in Tax Audit Law.)
(4429 Points)
Replied 15 January 2019
MANISH
(Student CA Final )
(38 Points)
Replied 15 January 2019
Ruchika Somani
(Coaching and Practice in Tax Audit Law.)
(4429 Points)
Replied 15 January 2019
MANISH
(Student CA Final )
(38 Points)
Replied 15 January 2019
Ruchika Somani
(Coaching and Practice in Tax Audit Law.)
(4429 Points)
Replied 15 January 2019
reema
(ASSOCIATE COMPANY SECRETARY)
(41 Points)
Replied 16 January 2019
A debenture is one of the most typical forms of long term loans that a company can take. It is normally a loan that should be repaid on a specific date, but somedebentures are irredeemable securities (sometimes referred to as perpetual debentures). The majority ofdebentures come with a fixed interest rate.
So You cannot issue debentures to its parents company.
Sec185/186 cannot reflect this case.
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