S Ltd is a private company which is subsidiary of H Ltd (which is also private company holding 80% shares of S Ltd). The companies have directors in common. Can HLtd give loan to S Ltd? If no, what are the ways to give such loan
What are relevant provisions of companies act 2013 applicable in this regard?
Please help
But loan to company with common directors is covered u/s 185 (it falls within ambit of specified persons)
Please correct me if I am wrong
Refer the notification as referred above..if H ltd satisfies the same, sec 185 is N.A. and only sec 186 is to be followed......
If it does not satisfy, than Section 185 is to be followed.
Maam what if at time loan is given Sec 185 is not applicable (as per June 2015 notification) but later on it fails to satisfy the condition specified in notification. Do we need to repay back the loan?
We need to repay the loan??
| Originally posted by : RaVi Kiran Vustela | ||
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no need to repay.. you should look the exemption at the time of giving loan. |  |
Agree
Thank You very much
CAclubindia
