Lot is being discussed and talked about Sec 185 of Companies Act 2013 (dealing with loans to directors) which has been notified on 12/09/2013 and Ministry Of Corporate Affairs has come out with a clarification on the same and has stated that Section 372A of the Companies Act, 1956 dealing with inter-corporate loans continue to remain in force till section 186 of the Companies Act, 2013 is notified. This clarification was issued vide General Circular 18/2013, Dated: 19/11/2013 No. 17/202/2013-CL-V. Now again the ministry has come out with some more clarification on this issue vide circular no. 1/12/2013-CL.V, General Circular No. 03/2014 dated 14/02/2014, clarifying that any guarntee given or security Provided by a holding company in respect of loans made by a bonk or financida institution to its subsidiary company, exemption as provided in clause (d) of sub-section (8) of section 372A of the companies Act, 1956 shall be applicable till section 186 of this Companies Act, 2013 is notified. This clarification will, however, be applicable to cases where loans so obtained ore exclusively utilized by the subsidiary for its principal business activities. Detailed circular can be downloaded from the link below:
http://www.mca.gov.in/Ministry/pdf/General_Circular_3_2014.pdf
No comments:
Post a Comment