Hello All,
I have a small query.
Section 185 of the companies act 2013, prohibits loan to directors and their relatives. Section uses the terminology " Save as otherwise provided in this Act"
and section 186 (2) of the companies act 2013 read as
"No company shall directly or indirectly — (a) give any loan to any person or other body corporate; (b) give any guarantee or provide security in connection with a loan to any other body corporate or person; and (c) acquire by way of subscriptttion, purchase or otherwise, the securities of any other body corporate, exceeding sixty per cent of its paid-up share capital, free reserves and securities premium account or one hundred per cent of its free reserves and securities premium account, whichever is more.
Now my doubt is Loan to director allowed upto 60 % ?
CAclubindia
