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Unsecured loan and invetsment by public company

Co Act 2013 258 views 1 replies

Ravi Gupta

Company Secretary

42 Points Joined December 2009

Dear Professionals,

Can any body guide me on the following querries?

(a) Whether a Public Company has to file MGT-14 on unsecured Loan taken? The said loan amount is with in the prescribed limit of section 180 (1) (c) of the Companies Act, 2013 i.e. Special resolution has already passed for maximum limit.

(b) Whether a public Company has to file MGT-14 on Investment in mutual funds? The said investment is within the prescribed limit of 186 of the Companies Act, 2013 i.e. Special resolution has already passed for maximum limit.

Replies (1)

P C Agrawal

Registered independent director Past Ch

8229 Points Joined March 2007

1) Yes MGT.14 is required u/s 117(3)(g) read with Sec.179(3)(d).

2) Investment in mutual funds is not covered u/s 186. Sec.186 deals with investment of securities of bodies corporate. Mutual funds are managed by trusts and trusts are not bodies corporate. Hence Sec.186 is not applicable. Investment in mutual funds can be made by the Board without any limit and special resolution is not required for that. MGT.14 is required to be filed by public co. u/s 117(3)(g) read with Sec.179(3)(e).