Section 186

Intricacies of Section 185 and Section 186 of Companies Act, 2013

Company Law - Section 186 of Companies Act, 2013 Loans, Investment, Guarantee and Security A Company can: 1. Give loan to any person or body corporate 2. Give guarantee or provide security for any loan taken to any body corporate 3. Make investment in any body corporate Approving Authority 1. Board of Directors– Any of the above mentioned [&helli...

Read More

Provisions for Loan & Investment by Company under Section 186

Company Law - LOAN AND INVESTMENT MADE BY COMPANY as per section-186(1)- A company shall not make investment through more than two layer of investment company....

Read More

Overview of Inter-corporate Loans

Company Law - Section 186 of the Companies Act, 2013 | Loan and Investment by Company Section 186 of the Companies Act, 2013 deals with the loans and investments by the companies: 1. No company shall invest more than two layers in investment company. For Eg. X Ltd is holding 51% in Y Ltd and Y Ltd is […]...

Read More

Section 186 of the Companies Act, 2013

Company Law - 186(1) 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 other company incorporated in a country outside India if such other company has investment subsidiaries beyond ...

Read More

Section 185 & 186 of Companies Act r.w. Section 2(22)(e) of Income Tax – Consequences of non-compliance

Company Law - Practical application of Section 185 and Section 186 of Companies Act,2013 read with Section 2(22)(e) of Income Tax Act, 1961 and consequences on non- compliance’s of these sections. Let’s summarise these sections and understand the provision of relevant acts. Section 186 of Companies Act,2013 – Whether Loan, advance or guarante...

Read More

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 ...

Read More
Sorry No Post Found

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...

Read More

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...

Read More

Recent Posts in "Section 186"

Intricacies of Section 185 and Section 186 of Companies Act, 2013

Section 186 of Companies Act, 2013 Loans, Investment, Guarantee and Security A Company can: 1. Give loan to any person or body corporate 2. Give guarantee or provide security for any loan taken to any body corporate 3. Make investment in any body corporate Approving Authority 1. Board of Directors– Any of the above mentioned [&helli...

Read More
Posted Under: Company Law |

Provisions for Loan & Investment by Company under Section 186

LOAN AND INVESTMENT MADE BY COMPANY as per section-186(1)- A company shall not make investment through more than two layer of investment company....

Read More
Posted Under: Company Law |

Overview of Inter-corporate Loans

Section 186 of the Companies Act, 2013 | Loan and Investment by Company Section 186 of the Companies Act, 2013 deals with the loans and investments by the companies: 1. No company shall invest more than two layers in investment company. For Eg. X Ltd is holding 51% in Y Ltd and Y Ltd is […]...

Read More
Posted Under: Company Law |

Section 186 of the Companies Act, 2013

186(1) 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 other company incorporated in a country outside India if such other company has investment subsidiaries beyond ...

Read More
Posted Under: Company Law |

Section 185 & 186 of Companies Act r.w. Section 2(22)(e) of Income Tax – Consequences of non-compliance

Practical application of Section 185 and Section 186 of Companies Act,2013 read with Section 2(22)(e) of Income Tax Act, 1961 and consequences on non- compliance’s of these sections. Let’s summarise these sections and understand the provision of relevant acts. Section 186 of Companies Act,2013 – Whether Loan, advance or guarante...

Read More
Posted Under: Company Law |

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 |

Browse All Categories

CA, CS, CMA (6,061)
Company Law (8,348)
Corporate Law (10,098)
Custom Duty (9,264)
DGFT (4,802)
Excise Duty (4,747)
Fema / RBI (5,195)
Finance (5,594)
Income Tax (41,548)
SEBI (4,481)
Service Tax (3,981)

Search Posts by Date

July 2022
M T W T F S S
 123
45678910
11121314151617
18192021222324
25262728293031