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 ??
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Loan to a pvt. co. by a public co.
Replies (5)
- 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.
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