Can a Holding Company give loans to Subsidiary company, which is not a fully owned subsidiary
Loans to subsidiary companies (not 100% subsidiary)
prasad mullapudi (Student) (66 Points)
08 April 2016
prasad mullapudi (Student) (66 Points)
08 April 2016Can a Holding Company give loans to Subsidiary company, which is not a fully owned subsidiary
CS Arjun Rajagopal
(B.com, ACS)
(1056 Points)
Replied 13 April 2016
Hi Prasad,
Yes, holding company can give loan to a subsidiary company provided you are required to comply with provisions of Section 186 of the Companies Act, 2013. Kindly go through the section and rules for detailed understanding of yourself.
Regards,
Arjun Rajagopal
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