CS
2930 Points
Joined April 2016
Dear Mayank bhai,
As per section 186(2) of companies act 2013, a company can give give loan loan to any person or body corporate upto 60% of paid up share capital + free reserve+ securities premium amount 0r 100% of free reserve+ securities premium amount by passing board resolution in board meeting. for this kindly refer section 179(3)(f). For a public company form MGT 14 IS TO BE SUBMITED ALONG WITH COPY OF BOARD RESOLUTION. BUT IF COMPANY WANTS TO GIVE LOAN IN EXCESS OF LIMIT MENTIONED UNDER THE ABOVE RULE, COMPANY HAS TO PASS SPECIAL RESOLUTION
KINDLY ALSO REFER RULE 11 OF MEETING OF BOARD AND POWER RULES WHICH STATES THAT IF SUCH NGO COMPANY OR ANY COMPANY IS WHOOLY OWNED COMPANY OF THAT HOLDING COMPANY THEN NO NEED TO PASS SPECIAL RESOLUTION EVEN IN EXCESS OF 60% OR 100% AS THE CASE MAY BE. JUST PASS BOARD RESOLUTION IN BOARD MEETING