Sec 186 of companies act 2013

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3 Points Posted on 02 April 2020
what is "business of financing industrial enterprises" ? as per the amendment
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On 02 April 2020 at 00:07 Report
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Section 186 of the Companies Act 2013 outlines rules for loans and investments made by companies. An amendment in 2019 clarified that companies whose primary business is financing industrial enterprises are exempt from certain provisions of this section. This means specific rules regarding loans, investments, and guarantees may not apply to them in the ordinary course of their business.

Guest
As per the section 186 the company established with the objects of and engaged in the business of financing industrial enterprise were exempt from certain provision of section 186 i.e. loan and investment by company .
so as per notification dt 11.10.2019 amend rule 11 of Companies (Meetings of Boards and it's Power) Rules,2014 provide the following line as :

Companies (Meetings of Board and its Powers) Rules, 2014, in rule
11, in sub-rule (2), for the words "business of financing of companies", the
words "business of financing industrial enterprises" shall be substituted.
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On 02 April 2020 at 13:43
Guest

"business of giving of any loan to a person or providing any guaranty or security for due repayment of any loan availed by any person in the ordinary course of its business"

 

source: https://ebook.mca.gov.in/Actpagedisplay.aspx?PAGENAME=18101

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On 02 April 2020 at 15:25

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