COMPLICATIONS UNDER SEC 185 AND SEC 186

[Surabhi Jain]

CAN ANYONE CLARIFY THE CONTRADICTIONS UNDER SEC 185 AND SEC 186.

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Sec. 185 prohibits loans to specific related parties and Sec. 186 permits giving of loan etc. to any person, subject to certain restrictions. The former enumerates to whom loan is to be given, whereas the latter prescribes limits and restrictions.

Now can we not grant loans to directors and its interested parties fulfilling the criteria and in accordance with the limits stated in sec 186.

Regards,

CS Surabhi Jain

[sravanthi g]

Any person in 186 means - any person not covered under 185. Hence you cannot give loan to directors.

Thanks & Regards,

CS Sravanthi Raviteja

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[CS Sumit Talreja]

Can be given incase of Pvt. Cos. if condtns specified in Ntfctn dated 5th June, 2015 is complied with.

[Sonia Yadav]

Agree with Mr. Sumit.

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From: CS Sumit Talreja <talreja...@gmail.com>
To: csmy...@googlegroups.com
Sent: Monday, January 4, 2016 8:08 PM
Subject: Re: [CSMysore] COMPLICATIONS UNDER SEC 185 AND SEC 186