Loans to Director(Section 295)

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Hi

 

If in a listed public company, money is given on behalf of company to a Director relative for purchase of an agricultural land.

 

Does dis transaction will fall under Section 295 of Companies Act, also whether  entry in 301 is to be made.

 

Further if it comes  under section 295 can co go for compounding for  the same.

 

Replies (5)

yes this transaction will fall under sec. 295.

because specified person include dierctor of lending co. and relative of such director.

and entry in register maintained u/s 301 is not required because that register is maintained for the section 297 or 299.

 

in my opinion comapny or director who is in default can go for compounding u/s 621 A.

yes this fall under 295. the company has to take prior permission of central government.

Although there are many bail out packages also available.

 

Dear gita sir,

In this article the relationship between Sections 297, 299 and 301 is discussed,

 

 

and also the additional information that is required to be obtained by the Auditor

 

 

for commenting upon the completeness of the 301 Register is discussed.

 
 
 
Regards
 
K.ilayaraja.

article

Hi

can u tell me whether sec 295 is applicable or not

 

or can co just enter a MOU with the Director relative.

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