Loans By Company Applicable to Pvt Co in Companies Act, 2013

Sneha (Company Secretary) (1594 Points)

18 September 2013  

Presently provisions of Section 372A of Companies Act 1956 relating to Inter-corporate loans and investments are not applicable to private companies

 

However, now corresponding new Section 186 of Companies Act 2013 relating to Loan and investment by company. (which is yet to be made effective) has taken away such exemption from private companies   Compliance on the part of private companies will increase substantially.