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» Applicability of Section 186 for pvt company
Applicability of Section 186 for pvt company EmptyTue Jul 29, 2014 3:02 pm by gaurav_kp@hotmail.com

» The Companies (Meetings and Powers of Board) Amendment Rules, 2014
Applicability of Section 186 for pvt company EmptyFri Jun 13, 2014 9:53 am by News Reporter 01

» CS Appointment - Rules Amended
Applicability of Section 186 for pvt company EmptyWed Jun 11, 2014 11:46 am by News Reporter 01

» Latest 3 Circulars from MCA
Applicability of Section 186 for pvt company EmptySat May 24, 2014 12:21 pm by News Reporter 01

» The Companies (Registration Offices and Fees) Amendment Rules, 2014
Applicability of Section 186 for pvt company EmptyTue Apr 29, 2014 1:59 pm by News Reporter 01

» New Companies Act eases concerns over high pay
Applicability of Section 186 for pvt company EmptyWed Apr 23, 2014 12:40 pm by News Reporter 01

» Form filing from 28th April, 2014
Applicability of Section 186 for pvt company EmptySat Apr 12, 2014 11:44 am by News Reporter 01

» Appointment of Nominee Director as per Section 161(3)
Applicability of Section 186 for pvt company EmptyFri Apr 11, 2014 12:17 pm by News Reporter 01

» Clarification on Point No. (I) of definition Clause 2(51) of Key Managerial Personnel
Applicability of Section 186 for pvt company EmptyFri Apr 11, 2014 11:51 am by News Reporter 01


3 posters

    Applicability of Section 186 for pvt company

    avatar
    Carishma Patney


    Posts : 1
    Join date : 2014-03-30

    Applicability of Section 186 for pvt company Empty Applicability of Section 186 for pvt company

    Post by Carishma Patney Mon Mar 31, 2014 1:21 pm

    I hv a pvt company whose subsidiary is also a pvt company having 1 director in common. This holding company lends money to its subsidiary company every month for the purpose of working capital. The amt of the same is nt fixed.

    Plz tell me the applicability of section 185 and 186 under Companies act 2013 for this type of transaction between such pvt companies.
    avatar
    kumavat


    Posts : 1
    Join date : 2014-04-15

    Applicability of Section 186 for pvt company Empty Re: Applicability of Section 186 for pvt company

    Post by kumavat Tue Apr 15, 2014 12:21 pm

    Section 185 will not be attracted in this case. A holding company can give loan to its subsidiary even if there are common directors in holding and subsidiary.
    As far as section 186 is concerned, sub-section 3 will not be applicable (i.e. passing special resolution in case limits exceeds as mentioned in sub-section 2) but borrower-subsidiary needs to pay interest to holding as per section 186(7).
    In case the answer is not clear pls revert.
    avatar
    gaurav_kp@hotmail.com


    Posts : 1
    Join date : 2014-07-29

    Applicability of Section 186 for pvt company Empty Re: Applicability of Section 186 for pvt company

    Post by gaurav_kp@hotmail.com Tue Jul 29, 2014 3:02 pm

    Section 185 will be not applicable only in the case when the subsidiary company is wholly owned subsidiary company and the amount of loan should be used only for principal business of the subsidiary company.

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    Applicability of Section 186 for pvt company Empty Re: Applicability of Section 186 for pvt company

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