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Jul 30, 2021 · There are four subsections of section 185 of the companies act 2013. Section 185 (1) :- No company shall, directly or indirectly, 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,—
185. Loans to directors, etc. (1) No company shall, directly or indirectly, 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,—.
Section 185 of the Act provides the conditions and restrictions of granting loans to the directors. Every company must follow the conditions laid down in this Section before granting loans or giving guarantee or security in connection with any loan.
Jul 3, 2014 · Analysis of section 185 of companies act 2013. a) section 185 of companies act 2013 applies to both private and public companies, b) No company can directly or “indirectly” advance loan to its “directors” or to “other persons in whom directors are interested”
Section 185 in The Companies Act, 2013. 185. Loan to directors, etc.—. (1) Save as otherwise provided in this Act, no company shall, directly or indirectly, advance any loan, including any loan represented by a book debt, to any of its directors or to any other person in whom the director is interested or give any guarantee or provide any ...
Dec 20, 2023 · According to Section 185, the Companies are prohibited from granting money to the directors or other interested individuals without necessary checks and balances. Specific requirements are outlined in Section 185 for Companies to grant loans, security, or guarantees to their directors or other individuals in whom directors possess interest.
Sep 12, 2013 · In case of Government company - Section 185 shall not apply to Government Company in case such company obtains approval of the Ministry or Department of the Central Government which is administratively in charge of the company, or, as the case may be, the State Government before making any loan or giving any guarantee or providing any security ...
