Section 186

Section 186 of Companies Act 2013 – Loan & Investment by company

Company Law - No investment shall be made or loan or guarantee or security given by the Company unless resolution sanctioning it passed at the meeting of the Board with the consent of all the directors present at the meeting....

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Provisions related to Funding From Company to Company

Company Law - BACKGROUND: If Promoters are starting a business (Company) or trying to grow an existing business (Company), all certainly will need money. This money can come from various sources. Source of Funding: Roughly speaking, Investments break down into two different forms: Debt and Equity. Debt Funding: Debt means money borrowed from lenders by...

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Loan and Investment by Company -Section 186 -Companies Act, 2013

Company Law - Loan and Investment by Company Under section 186 of the Companies Act, 2013 - The Sub Section (1) of Section 186 is applicable on all Companies either private Companies or public Companies. ...

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Extract of Section 186 of Companies Act, 2013

Company Law - Loan and investment by company- Section 186 186. (1) Without prejudice to the provisions contained in this Act, a company shall unless otherwise prescribed, make investment through not more than two layers of investment companies: Provided that the provisions of this sub-section shall not affect,— (i)    a company from acquiring any ...

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Clarification Under section 186(7) of Companies Act, 2013

General Circular No. 06/2015 - (09/04/2015) - In cases where the effective yield (effective rate of return) on tax free bonds is greater than the prevailing yield of one year, three year, five year or ten year Government Security closest to the tenor of the loan, there is no violation of sub-section (7) of section 186 of the Companies Act,2013...

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Loans & advances to employees – Applicability of Section 185 / 186 of Companies Act, 2013

General Circular No. 04/2015 - (10/03/2015) - The issue has been examined and it is hereby clarified that loans and/or advances made by the companies to their employees, other than the managing or whole time directors (which is governed by section 185) are not governed by the requirements of section 186 of the Companies Act, 2013. This clarific...

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Recent Posts in "Section 186"

Section 186 of Companies Act 2013 – Loan & Investment by company

No investment shall be made or loan or guarantee or security given by the Company unless resolution sanctioning it passed at the meeting of the Board with the consent of all the directors present at the meeting....

Read More
Posted Under: Company Law |

Provisions related to Funding From Company to Company

BACKGROUND: If Promoters are starting a business (Company) or trying to grow an existing business (Company), all certainly will need money. This money can come from various sources. Source of Funding: Roughly speaking, Investments break down into two different forms: Debt and Equity. Debt Funding: Debt means money borrowed from lenders by...

Read More
Posted Under: Company Law |

Clarification Under section 186(7) of Companies Act, 2013

General Circular No. 06/2015 (09/04/2015)

In cases where the effective yield (effective rate of return) on tax free bonds is greater than the prevailing yield of one year, three year, five year or ten year Government Security closest to the tenor of the loan, there is no violation of sub-section (7) of section 186 of the Companies Act,2013....

Read More

Extract of Section 186 of Companies Act, 2013

Loan and investment by company- Section 186 186. (1) Without prejudice to the provisions contained in this Act, a company shall unless otherwise prescribed, make investment through not more than two layers of investment companies: Provided that the provisions of this sub-section shall not affect,— (i)    a company from acquiring any ...

Read More
Posted Under: Company Law |

Loans & advances to employees – Applicability of Section 185 / 186 of Companies Act, 2013

General Circular No. 04/2015 (10/03/2015)

The issue has been examined and it is hereby clarified that loans and/or advances made by the companies to their employees, other than the managing or whole time directors (which is governed by section 185) are not governed by the requirements of section 186 of the Companies Act, 2013. This clarification will, however, be applicable if su...

Read More

Loan and Investment by Company -Section 186 -Companies Act, 2013

Loan and Investment by Company Under section 186 of the Companies Act, 2013 - The Sub Section (1) of Section 186 is applicable on all Companies either private Companies or public Companies. ...

Read More

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