Under Companies Act 2013, Section 185 explains provision related to Loan to directors.

Section 185(1) No company shall, directly or indirectly, advance any loan, including any loan represented by a book debt to, or give any guarantee or provide any security in connection with any loan taken by

Relaxtion

Section 185(2)

Section 185(2)– A company may advance any loan including any loan represented by a book debt, or give any guarantee or provide any security in connection with any loan taken by any person in whom any of the director of the company is interested, i.e.

 

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Section 185(3)

Non applicabilty

Section 185(4)

If any loan is advanced or a guarantee or security is given or provided or utilised in contravention of the provisions of this section,

Penalty

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