Whether provisions of sub-section (1) have to be complied with by exempted companies on their ceasing to be so - Companies Law - No. 13/(98)‑CL‑VI/67,

Circular : No. 13/(98) ‑ CL ‑ VI/67, dated 24 ‑ 2 ‑ 1971. Subject:- Whether provisions of sub-section (1) have to be complied with by exempted companies on their ceasing to be so The reference is to be made to Circular Letter No. 13(98)‑CL‑VI/67, dated 19‑11‑1968 [printed as Clarification 2]. The question as to whether any loan made, guarantee given or security provided by the exempted companies mentioned in sub‑section (2) of section 370 would require the approval of the Company Law Board for the continuance of such loan guarantee or security after the exemption provided has ceased to be operative, has been reconsidered and the Department has now been advised that the provisions of section 370 would not be applicable to the loans made, guarantees given or securities provided by the exempted companies even though they cease to be so and the compliance of section 370 would not be required, if such loans, guarantees, or securities are continued after the exemption under sub‑section (2) of section 370 ceases to exist.