Section 15 - Amendment of section 185 - Companies (Amendment) Act, 2015

Amendment of section 185 15. In section 185 of the principal Act , in sub-section (1), in the proviso, after clause (b) the following clauses and proviso shall be inserted, namely:- (c) any loan made by a holding company to its wholly owned subsidiary company or any guarantee given or security provided by a holding company in respect of any loan made to its wholly owned subsidiary company; or (d) any guarantee given or security provided by a holding company in respect of loan made by any bank or financial institution to its subsidiary company: Provided that the loans made under clauses (c) and (d) are utiised by the subsidiary company for its principal business activities. .