Section 186

As you all know that inter corporate loans and investments play a vital role in flow of funds to group companies which face financial crisis. As per Section 186(1) of Companies Act 2013 a company can make investment through not more than 2 layers of investment companies but having certain exceptions. This provision is not […]...

Loans, Investment, Guarantee or Security by Company: FAQs based analysis of the Section 185 and Section 186 of Companies Act, 2013 The article explains the Section 185 and 186 of Companies Act, 2013 in the form of Q&A with practical approach. “Section 185: “Loan to directors, etc.— (1) Save as otherwise provided in this Act, [&h...

A Company can give loans and guarantees, acquire securities or make investments in another company or body corporate with the consent of the board or shareholders. Such loans given by a company to other companies or body corporates are known as inter-corporate loans. When a company invests in another company, it is known as inter-corporat...

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...

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....

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 […]...

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 ...

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...

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. ...

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 […]...