Section 186

Analysis of Section 186 of Companies Act i.e. Loan & Investment by Company

Company Law - Analysis of Sec-186 of Companies Act i.e. Loan and Investment by Company, Notified date of section is 1st April 2014 It explains Inter-corporate Loans and Investments (i.e. investment by one company in another company). Sec-185 applicable where Company gives Loan / Guarantee / Security to Director or any person in which he is interested. ...

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Analysis of Section 184, 185 and 186 of Companies Act, 2013

Company Law - Disclosure of Interest by Director under Section 184, Loan to Director under Section 185 and Loan and Investment under Section 186 of the Companies Act, 2013. This Article aims to bring a clear vision on the Disclosure of Interest by Director under Section 184, Loan to Director under Section 185 and Loan and Investment under […]...

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Inter-Corporate Loans & Investments under Companies Act, 2013

Company Law - Article explains Provisions of Section 186 of Companies Act, 2013 related to Inter-Corporate Loans & Investments. Section 186 is NOT Applicable to Loan Made, guarantee given or security provided or investment made by Banking Company, or Insurance Company or Housing Finance Company in the ordinary course of its business or whose princi...

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Section 186 | Loan & Investment by Company | Companies Act 2013

Company Law - The power to invest funds of the company is derived by Board under section 179 of the Act. However, the Companies Act, 2013 contains provisions for restrictions on investments that a company can make and loans it can made. Apart from loan and investments, restrictions are also placed on the guarantees which the company can […]...

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Can Private Company Give Loan or Guarantee for Directors Bank Loan?

Company Law - 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 […]...

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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"

Analysis of Section 186 of Companies Act i.e. Loan & Investment by Company

Analysis of Sec-186 of Companies Act i.e. Loan and Investment by Company, Notified date of section is 1st April 2014 It explains Inter-corporate Loans and Investments (i.e. investment by one company in another company). Sec-185 applicable where Company gives Loan / Guarantee / Security to Director or any person in which he is interested. ...

Read More
Posted Under: Company Law |

Analysis of Section 184, 185 and 186 of Companies Act, 2013

Disclosure of Interest by Director under Section 184, Loan to Director under Section 185 and Loan and Investment under Section 186 of the Companies Act, 2013. This Article aims to bring a clear vision on the Disclosure of Interest by Director under Section 184, Loan to Director under Section 185 and Loan and Investment under […]...

Read More
Posted Under: Company Law |

Inter-Corporate Loans & Investments under Companies Act, 2013

Article explains Provisions of Section 186 of Companies Act, 2013 related to Inter-Corporate Loans & Investments. Section 186 is NOT Applicable to Loan Made, guarantee given or security provided or investment made by Banking Company, or Insurance Company or Housing Finance Company in the ordinary course of its business or whose princi...

Read More
Posted Under: Company Law |

Section 186 | Loan & Investment by Company | Companies Act 2013

The power to invest funds of the company is derived by Board under section 179 of the Act. However, the Companies Act, 2013 contains provisions for restrictions on investments that a company can make and loans it can made. Apart from loan and investments, restrictions are also placed on the guarantees which the company can […]...

Read More
Posted Under: Company Law |

Can Private Company Give Loan or Guarantee for Directors Bank Loan?

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 […]...

Read More
Posted Under: Company Law |

Amended Legal Position of Intercorporate Loans | Section 185 & 186

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 investme...

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Posted Under: Company Law |

Inter Corporate Loan And Investment | Section 186 | Companies Act 2013

SECTION 186 OF COMPANIES ACT 2013 A Company can give Loan or provide Security/Guarantee to Any Person/Body corporate and acquire by way of subscription securities of any other body corporate (By Board Resolution) ⇓ (With Consent Of All Director Present + PFI  Prior Approval *) UP TO 60% of its Paid up capital + Free […]...

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Posted Under: Company Law |

Loan to Director – Companies Amendment Act, 2017

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. ...

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Posted Under: Company Law |

Section 186 of Company Act 2013- Loan and investment by company

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...

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Posted Under: Company Law |

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....

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Posted Under: Company Law |

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