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Loan to pvt ltd co.

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Abhishek Kumar Gupta

Article

148 Points Posted on 03 May 2020

as per combine reading of sec. 185 and 186, can a pvt ltd co. give loan to another pvt ltd co having common director?? if yes then max amount of loan??

Replies (3)

Quick Summary

This discussion clarifies whether a private limited company can provide a loan to another private limited company that shares a common director. The consensus is that it is permissible, with no inherent maximum loan amount. However, Section 186 of the Companies Act, 2013, mandates a special resolution if the total loans, guarantees, and investments, including the proposed loan, exceed specified limits.

sanjith kotni

Articled assistant

663 Points Posted on 03 May 2020

There is no limit .The limit is there only for requirement of passing special resolution if the total loans ,gaurantee and investments made so far together with proposed loan or gaurantee exceed the limits specified in 186(2).

So no limit for giving loan ,if you pass special resolution when the limits exceed .

Harish choursiya

Student cs professional

249 Points Posted on 03 May 2020

Company may provide loan, made investment or provide guarantee to person or body corporate subject to in compliance of section 186 of the Companies Act, 2013

Here the limit of loan, investment or guarantees which can be extended by way of passing special resolution as provide in 186(2).