Can a Private Limited Co give unsecured loan to Public Comapny(Unlisted). Share Holders of both the comanies are 70% same
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Unsecured Loan
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Its seems no one has the answer for the same in the forum
Hi Rahul, Since Sec 295 is not applicable on Private Companies hence there is nothing to stop a Private ltd. Co's to grant Loan to a Public Co's (with 70% common shareholding)...Only thing is to Look for is the OPERESSION or MISMANAGEMENT i:e interest of Minority Shareholders in the Private Limited should not be affected with this Transanction of Loan..Refer EXCEPTIONS TO THE RULE OF "FOSS v/s HARBOTTLE"
Click on the Link to see the Judgement in the case of Foss v/s Harbottle and exceptions to the rule..
https://en.wikipedia.org/wiki/Foss_v_Harbottle#Exceptions_to_the_rule
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