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SECTION 185, Corporate Laws / SEBI / LLP

Issue Id: - 108606
Dated: 15-5-2015
By:- SHASHI BALA

SECTION 185


  • Contents

Querry :

CORPORATE GUARANTEE GIVEN BY SUBSIDARY COMPANY W.R.T. THE LOAN GIVEN TO ITS HOLDING COMPANY BY SBI CAP FINANCIAL INSTITUTION. COMMON DIRECTORS IN BOTH THE COMPANIES.
HOWEVER LOANS BY HOLDING TO ITS WHOLLY OWNED SUBSIDIARY IS EXEMPT BUT THIS CASE IS OPPOSITE.
IS THERE ANY WAY OUT TO ESCAPE FROM THE PENAL CONSEQUENCES OF SECTION 185 ?

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