Dear Members,
Have a doubt regarding the vacation of office by Directors -Section 283 who falls under the contravention of section 295
There is a public Company who has defaulted under section 295. as in the Company has given loan to the person specified in the sction 295 without obtaining the central governments approval.
Now there is a default so the borrowed money was repaid in full. and in section 295 it says that where any such loan is reapaid in full no punishment by way of imprisonment shall be imposed under this section .So thsi is taking bout the Director to whom the loan is given rite????
ANd now section 283 says that director will vacate the office when the director accepts a loan in contravention of sec 295.
If the LOAN is REPAID, still the Director will have to vacate the office .
Please tell me as to whether section 283 will eb hit even if the loan is repaid in fullllll...
Regards,
Mayuri Lal
CAclubindia
