SC: Legal fiction in Sec 2(22)(e) does not extend to, or broaden the concept of a shareholder
Last updated: 11 October 2022
Court :
Supreme Court of India
Brief :
Held that - Any payment by a closely held company by way of advance or loan to a concern in which a substantial shareholder is a member holding a substantial interest is deemed to be "dividend" on the presumption that the loans or advances would ultimately be made available to the shareholders of the company giving the loan or advance. However, the legal fiction in s. 2(22)(e) does not extend to, or broaden the concept of, a "shareholder"
Citation :
CIVIL APPEAL NO. 3961 OF 2013
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FCS Deepak Pratap Singh
Published in Corporate Law
Views : 483
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