section 185

Loan to Directors| Section 185 Provisions | Companies Act, 2013

Company Law - Legal Provision:- Section No. 185: 1. No company shall, directly or indirectly, give advance any loan, including any loan represented by a book debts to or give any guarantee or provide any security in connection with any loan taken by- Any director of company or of a company which is its holding company or any […]...

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Provisions of Loan from Directors under Companies Act, 2013

Company Law - Before jumping into the main discussion, let us have a look into the important term as under: Loans is not defined anywhere in the Companies Act, 2013. However, in normal parlance, any transaction in which money is given with the intention to be returned either with or without interest is termed as loan. Deposits include […]...

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Loan to Director under Companies Act, 2013

Company Law - Loan to Directors under Companies Act, 2013 1. Section 185(1) Prohibition No company shall give, advance any loan, including any book debts to, or provide any security or give  any guarantee in connection with any loan taken by- a. any director of company, or of a company which is its holding Company or any partner […]...

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Section 185 – Loan to Directors- An Overview

Company Law - ♦ Purpose of the provisions of Section 185:  To address the difficulties being faced in genuine transactions due to the complete embargo on providing loans to subsidiaries with common directors, the companies are permitted to give loans to entities in which directors are interested after passing special resolution and adhering to discl...

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Loan to Directors by Companies – Section 185

Company Law - Loan to Directors, etc. Section 185 of Companies Act, 2013, explains the provisions related to loans or advances to directors or any security provided in connection with any loan taken by him or his relative either directly or indirectly by the company and also the punishment for contravention of the provisions of this section. The [&hell...

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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 185"

Loan to Directors| Section 185 Provisions | Companies Act, 2013

Legal Provision:- Section No. 185: 1. No company shall, directly or indirectly, give advance any loan, including any loan represented by a book debts to or give any guarantee or provide any security in connection with any loan taken by- Any director of company or of a company which is its holding company or any […]...

Read More
Posted Under: Company Law |

Provisions of Loan from Directors under Companies Act, 2013

Before jumping into the main discussion, let us have a look into the important term as under: Loans is not defined anywhere in the Companies Act, 2013. However, in normal parlance, any transaction in which money is given with the intention to be returned either with or without interest is termed as loan. Deposits include […]...

Read More
Posted Under: Company Law |

Loan to Director under Companies Act, 2013

Loan to Directors under Companies Act, 2013 1. Section 185(1) Prohibition No company shall give, advance any loan, including any book debts to, or provide any security or give  any guarantee in connection with any loan taken by- a. any director of company, or of a company which is its holding Company or any partner […]...

Read More
Posted Under: Company Law |

Section 185 – Loan to Directors- An Overview

♦ Purpose of the provisions of Section 185:  To address the difficulties being faced in genuine transactions due to the complete embargo on providing loans to subsidiaries with common directors, the companies are permitted to give loans to entities in which directors are interested after passing special resolution and adhering to discl...

Read More
Posted Under: Company Law |

Loan to Directors by Companies – Section 185

Loan to Directors, etc. Section 185 of Companies Act, 2013, explains the provisions related to loans or advances to directors or any security provided in connection with any loan taken by him or his relative either directly or indirectly by the company and also the punishment for contravention of the provisions of this section. The [&hell...

Read More
Posted Under: Company Law |

Summary of section 185 of Companies Act, 2013: Loan to Directors

The summary of the provision related to Loan to Directors as per section 185 of the Companies Act, 2013 is given below: A. Compliance required: Section 185(1) 185(2) Facility Provide Loan, Give Guarantee or Provide Security Provide Loan, Give Guarantee or Provide Security Lender Any Other Company Any Other Company Borrower a) Its director...

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Posted Under: Company Law |

Section 185- Loan, Guarantee & Security to Director & related parties

1. Objective of Section 185 of Companies Act, 2013:- In order to prevent Directors and their related persons to derive out the funds of the company by way of presenting loan with an intention to not to repay such amount subsequently. Hence that loan becomes non performing asset for the company. 2. Legal Provisions of […]...

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Posted Under: Company Law |

Loan to Directors | Companies Act 2013 | Section 185

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 Section 185(2) Section 185(2)– A compan...

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Posted Under: Company Law |

LOAN TO DIRECTORS | Provisions | Section 185 | Companies Act 2013

Introduction: -Section 185 of CA, 2013 was notified on September 12, 2013 and came into force on the same date replacing the old section 295 of the Companies Act, 1956 which provides for loans to directors. -With the recommendation of the Company Law Committee (CLC) the said section got substituted via Companies (Amendment) Act, 2017 [&he...

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Posted Under: Company Law |

Can a company give loan to director?

This is a question which is always in the mind of business owners. Whether there is any violation if my Company give loan to the director. Is there any penalty? Let me give you a detailed informed to solve your problem Can a company give loan to a director? Company (Private & Public whether small, […]...

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Posted Under: Company Law |

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