Section 185 applicability

As per Notification dated 13th June,2017 Section 185 shall not be applicable to a Private company :

• (a) in whose share capital no other body corporate has invested any money;
• (b) if the borrowings of such a company from banks or financial institutions or anybody corporate is less than twice of its paid up share capital or fifty crore rupees, whichever is lower, and
• (c) such a company has no default in repayment of such borrowing subsisting at the time of making transactions under this section.