Detailed Analysis of Section 185 – Loan to Directors

SECTION-185

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LOAN, GUARANTEE OR PROVIDING SECURITY TO DIRECTORS, ETC.

OBJECTIVE OF SECTION 185

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To Prevent the directors from using their undue influence in obtaining Loan From their Own Company either for themselves or for their relatives or partners.

APPLICABILITY OF SECTION 185

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This Section Shall be Applicable to ALL COMPANIES Except:- Certain Private Companies Only which fulfill 3 Conditions.

SECTION-185 (1)

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SECTION-185 (2)

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Explanation of Section-185(2)

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(Which Ever is Less)

Exemptions of Section-185

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Contravention of Section-185

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(Submitted by CS Amit Chauhan and you can contact me at [email protected])