Loan to director

The provisions of section 295 relating to Loans to Directors by the Co are not applicable to a pvt co unless it's an subsidiary of a public co.

so if the pvt co is not an subsidiary of the public co, it can give any amount of laons without any restrictions.  however the co  should pass a resolution at the general meeting for granting loans to directors.

Thank you...but why did you specify general meeting...why cant we pass a board resolution and give loan to a director....is there any specific reason for it??

Please guide.