Company Law : Step-loans can unintentionally violate Section 185 by creating indirect loans to directors. Companies often overlook how layered t...
Company Law : Understand Section 186 of the Companies Act, 2013, covering company loans, investments, and compliance requirements, including boa...
Corporate Law : Learn about intercorporate transactions, limitations, and compliance under Section 186. Get insights on loans, guarantees, and sec...
Company Law : Dive into Section 186 of the Companies Act, 2013, exploring its impact on Non-Banking Financial Companies (NBFCs). Discover regula...
Company Law : Explore Section 186 of Companies Act, 2013, covering limits, exemptions, resolutions, disclosures and more regarding loans & inves...
Company Law : Loan and investment by company- Section 186 186. (1) Without prejudice to the provisions contained in this Act, a company shall un...
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 deletes addition on whole amount from sale of shares in Nikunj Kaushik Shah Vs ITO case, criticizing unwarranted litig...
Corporate Law : Under section 45 of PMLA Act, the extent of involvement of the persons falling in such category in the alleged offences, the natur...
Company Law : In cases where the effective yield (effective rate of return) on tax free bonds is greater than the prevailing yield of one year,...
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 ...
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-corporate investment.
Understand the intricacies of Section 185 and Section 186 of the Companies Act, 2013. Learn about loans, investments, guarantees, and security provisions.
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 two layers as per the […]
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 guarantee is allowed to Directors or […]
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. Sec-186 […]
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 […]
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 principal business is of […]
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 […]
