Himanshu Gupta (Article) (63 Points)
30 December 2013Can any body explain the Exceptions to Section 185 of Companies Act, 2013?
Provided that nothing contained in this sub-section shall apply to—
(a) the giving of any loan to a managing or whole-time director—
(i) as a part of the conditions of service extended by the company to all its employees
CS BHAVIN SHETH
(MANAGER-Company Secretary)
(131 Points)
Replied 30 December 2013
Dear Himanshu,
As per my Understanding,
Section 185 will not apply to a loan given to WTD /MD, if loan is extended to all employees of Company on similar conditions and is not specifically given to WTD/MD.
regards
BHAVIN N SHETH
Himanshu Gupta
(Article)
(63 Points)
Replied 30 December 2013
Thanks for Your Reply!
But what does this sentence mean?
"as a part of the conditions of service extended by the company to all its employees"
Does it mean that the consideration to employees is in the form of loans?
CS BHAVIN SHETH
(MANAGER-Company Secretary)
(131 Points)
Replied 30 December 2013
Yes Himanshu,
Conditions of services means terms and conditions on which loan is given to employees
thus terms and conditions should be same for all employees and WTD/MD
Then it is exempted from clause of section185
regards
CAclubindia
