loan to MD and WTD



can a private company give loan to its managing director and whole time director???if yes, what is the procedure??
 
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Student

Yes they can give Loan
 
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Yes the Company is allowed to given loans to its WTD and MD under a loan scheme which is allowed for each and every employee of the orgainisation and dose not limited only to the WTD and MD only.

Sub section 3(a) of section 185 states that

a) giving of any loan to a managing or whole-time director – (i) as a part of the conditions of service extended by the company to all its employees; or (ii) pursuant to any scheme approved by way of special resolution;

 
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