Can a Public ltd. co. give loan to a Private co. if in that Pvt co., the director of the lending public co. is not interested either as a director or member ??
Can a Public ltd. co. give loan to a Private co. if in that Pvt co., the director of the lending public co. is not interested either as a director or member ??
- Inter-corporate deposit is not a public deposit as per Companies (Acceptance of Deposits) Rules 2014.
- Sec.185 will not apply in this case.
- Lending co. has to ensure compliance of Sec.186; pass board resolution & file MGT.14
- Borrowing co. has to ensure compliance of Sec.180; pass Board resolution & file MGT.14.
Thank u Sir for the reply.
Sir, I have one more query regarding this. Will there be any contravention of the Act ,if the private co. to which loan is to be given is a shareholder in the Lending Public Co. ?
Thank u Sir for the reply.
Sir, I have one more query regarding this. Will there be any contravention of the Act ,if the private co. to which loan is to be given is a shareholder in the Lending Public Co. ?
Will the Deemed Dividend provisions of The Income Tax Act, will get attracted in this case, when the pvt co. is a shareholder in the Lending Public co.??
Provisions of deemed dividend will apply only iff the conditions of Section 2(22)(e) of IT Act are attracted. Pl check the same.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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