Sec 372a still applicable

Thanks Ayush for updating...............

Keep Sharing.............

What about private limited companies? 372A is applicable only to public ltd co and to a pvt ltd co which is subsidiary of pub ltd co. Does section 185 of Co act 2013 applicable to pvt ltd co? Is earstwhile sec 295 is also restored until 186 (2013 Act )is applicable applicable?

Please answer my query. Sec 185 of Companies Act, 2013 also includes "Company can neither take loan nor give loan/security and gaurantee". No limit prescribed in section 185 as it is covered by Sec 186 of Companies Act, 2013 (not yet effective).

Sec 372A of Companies Act, 1956 is applicable only to public company and pvt co subsidiary of public company.

So provision of sec 185 of CA, 2013 and Sec 372A of CA, 1956 is contradictory in terms of giving loan/gaurantee/security ??

Ms.snehaji,

you raised a good issue.

the govt is seized of the problem because several lenders and borrowers in corporate sector are into trouble bacause of new sec  186 not made effective and , sec 185 was effectice but incomplete.

so clarification was given that till  the new sec 186 is made effective, old sec 372A provisions are applicable.