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New section 185 co. act 2013
Dear Friends,
My company wants to give Corporate guarantee to its Wholly owned subsidiary, wherein there are no common directors or no directors shareholding.
As per my understanding Sec 185 is may not be attracted, as no common directors.
Can we do so under new act? Can anybody clarify on this.
Thanks
Varsha
Replies (5)
Yes, acc to my understanding Sec 185 of Companies Act 2013 will not be applicable in this case.
Kindly go through this link
https://india-financing.com/images/Articles/Section_185_of_Companies_Act_2013_STRAIGHT_ANSWERS_TO_SOME_NAGGING_QUESTIONS.pdf
True and additionally, MCA has vide its notifiaction No.17/202/2013-CL-V once again reactivated section 372A and hence section 185 of CA act, 2013 will not be applicable.
Regards.
Section 185 will not be applicable in your case, provided the Subsidiary Co. Board are not accumstomed to act in accordance with the direction/instruction of Holding Co.Board (clause e).
Section 372A is also not applicable here.
Yes. 185 will not be attracted
Thanks a lot friends, for clarifying my doubt immediately.
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