Company Law : "Learn about the prohibitions and restrictions under Section 185 of the Companies Act, 2013, regarding loans to directors, relativ...
Company Law : Among the provisions outlined in the act, Section 185 has garnered substantial attention due to its impact on loans and advances t...
Company Law : Explore Section 185 of the Companies Act, 2013, its exemptions, and practical examples. Learn when Section 185 is not applicable, ...
Company Law : Section 185 of the Companies Act 2013 Specifically provides about the Provisions related to Loan to directors by the company. In t...
Company Law : Section 185 of the Companies Act is like a rule book that tells grown-ups who run big lemonade stands (called companies) what they...
Income Tax : Calcutta High Court ruling states payments by supervisors to individual labourers, each not exceeding Rs. 20,000, cannot be disall...
Income Tax : ITAT Mumbai held that addition of notional interest on advances to related parties (i.e. the directors and sister concern/related ...
Corporate Law : Conclusion: Arrears of property tax and water tax until the date of confirmation of sale, i.e., 04.07.2003, would qualify as the e...
Company Law : The issue has been examined and it is hereby clarified that loans and/or advances made by the companies to their employees, other ...
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 company may […]
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 […]
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, […]
Can A Private Company Give Loan Or Guarantee For Director Taking Loan From Bank? Section 185- Loan To Directors, Etc. As per Section 185(1) a company cannot 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 any […]
Inter-corporate loans and investments are important sources of funds for every company. The 2013 Act contains stringent provisions for providing loans to directors and companies in which directors are interested. Additionally, it provides guidance on loans, securities, and guarantees given to subsidiaries. Companies can also make investments in other entities as per Section 186 of the 2013 Act.
Section 185 explains Provisions under Company Law Related to Direct or Indirect Loan or Advances to Directors by Company. Loan or advances include loan represented by a book debt, to any of the directors or to any other person in whom the director is interested or give any guarantee or provide any security in connection […]
The Companies (Amendment) Bill, 2017 has proposed significant Amendments to Companies Act, 2013 which includes amendment to Section 185 and 186 of Companies Act, 2013 related to Loans to directors, etc. In this Article I have tried to analyse the proposed amendments to Section 185 and 186 of Companies Act, 2013.
The provisions of section 185 prohibits from granting any loans ,giving of guarantees or providing any security for loans advanced to its directors or any other person in whom the director is interested , except in cases where specific exemptions are stipulated in the section.
Loans and advances are used together and in common parlance deemed to be synonyms of each other but as per various judicial decisions there is a clear line of demarcation between the two terms.
No Company shall directly or indirectly advance a. any loan or b. loan represented as a book debt or c. guarantee or d. security. to any of its Director or any other person where the Director is interested.
