Sec 295

RAGUL (Company Secretary) (48 Points)

20 October 2011

Sir,

Is Sec 295 applicable for public Companies

1. If its b/w Holding & subsidary Companies

2. If its between 2 public Companies

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Shridhi Jain (Company Secretary) (1678 Points)
Replied 21 October 2011

Section 295 is applicable to Public co.and subsi of pub.co.

If any pub. co or subsi of pub.co. give loan, give security, guarantee

1. to any director,

2. to any firm, any co.(pub. or private), any body corporate in which such director is a partner or director or hold any key position,

then prior approval of Central Govt. is necessary.

_______________________________________________

LENDING CO. : Any Pub. co. or subsi of pub co.

BORROWER : Director, Any firm, Any co. (whether pub., subsi of pub. or private)

This section is not applicable to :

Any private co.

Any banking company

Loan b/w holding n subsi co.

I hope your doubt is clear now....

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