Dear All
A listed public company (A) is holding more than 80 % share in a pvt. co.(B). Now A wants to make loan to B. What wud b the applicable provisions. If in case anybody have a draft resolution pls attach.
Thanks & Regards,
Menu
Loan to subsidiary company
Replies (3)
| Originally posted by : Amisha | ||
 |
Dear All A listed public company (A) is holding more than 80 % share in a pvt. co.(B). Now A wants to make loan to B. What wud b the applicable provisions. If in case anybody have a draft resolution pls attach. Thanks & Regards, |
 |
Hi Amisha
Please refer the provisions of Section 372 A of companies act.
Its case of Inter-Corporate Loan, the loan made is subject to the limits as per section 372A.
It should not exceed 60% of Paid up sharecapital + free reserves or 100% of its free reserves which ever is higher.
Other views welcome.
regards
Santosh Shah
I would like to add further that any loan exceeding the limits specified as above shall be made subject to previous authorisation by a special resolution passed in a general meeting.
Hi
Thanks Santosh & Thanks Jayshree.
Regards,
Recent Topics :
- Late Fees and Interest
- HDFC Bank’s Bureaucracy: The Nightmare of Fl
- Running a CSC Center, Maha E-Seva Kendra, Setu Ken
- GSTR-9 Table 8A issue
- CA Inter Coaching institutes at Hyderabad
- Looking for practising CA
- TDS return filing
- Need formats of FS as per Co act 2013 in soft copy
- Remittance to italy
- Invoice made but goods not sent
Related Topics :
CAclubindia
