Section 185 of company act 2017

by virtue of Company Act, 2017- Section 185, a private limited company can give loan to its MD / WTD.

A special resolution is required to approve the loan and that has to be filed by MGT 14.

My query is whether resolution filing by MGT 14 is mandatory for all private limited companies?

 

Replies (2)
Quick Summary
Section 185 of the Company Act 2017 permits private limited companies to grant loans to their Managing Director or Whole-Time Director. This requires a special resolution, which must be filed using form MGT 14. The discussion clarifies that filing MGT 14 is mandatory for all special resolutions, regardless of company type. However, Section 185 may not apply to private companies under specific exemptions, such as when no body corporate is a member and loans are obtained from banks or financial institutions.

All special resolutions have to be filed in MGT-14, whether it be a private or public company.

185 is not applicable for private companies by exemption not dated 06/2015 ,subject to certain conditions

a. No body corporate is member
b.Loan from banks/fi is <2x of paid up capital or 50 cr
c.No default in repayment of loan

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