What provisions are applicable for unsecured loan between two private ltd company having common directors?
Will Section 58A apply?
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Unsecured loan between two pvt. companies
Replies (4)
For Inter-corporate loans sec58a is not applicable,
any way wait for others to reply.
I agree section 58A will not be applicable however Section 372A is also not aplicable to private limited company
If common directors are interested in the said company then disclosure u/s 299 is required. Further disclosure is required to be made under related party transaction in the balance sheet.
Section 58A will not apply since inter-corporate deposits are excluded from the definition of 'deposits'. Refer Rule 2(b)(iv) of Companies (Acceptance of Deposits) Rules 1975.
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