TMI BlogLoan and investment by companyX X X X Extracts X X X X X X X X Extracts X X X X ..... ng the requirements under any law or under any rule or regulation framed under any law for the time being in force. (2) No company shall directly or indirectly - (a) give any loan to any person or other body corporate; (b) give any guarantee or provide security in connection with a loan to any other body corporate or person; and (c) acquire by way of subscription, purchase or otherwise, the securities of any other body corporate, exceeding sixty per cent of its paid-up share capital, free reserves and securities premium account or one hundred per cent of its free reserves and securities premium account, whichever is more. 2 [Explanation .-For the purposes of this sub- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (5) No investment shall be made or loan or guarantee or security given by the company unless the resolution sanctioning it is passed at a meeting of the Board with the consent of all the directors present at the meeting and the prior approval of the public financial institution concerned where any term loan is subsisting, is obtained: Provided that prior approval of a public financial institution shall not be required where the aggregate of the loans and investments so far made, the amount for which guarantee or security so far provided to or in all other bodies corporate, along with the investments, loans, guarantee or security proposed to be made or given does not exceed the limit as specified in sub-section (2), and there is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may be taken therefrom by any member, and copies thereof may be furnished to any member of the company on payment of such fees as may be prescribed. 4 [(11) Nothing contained in this section, except sub-section (1), shall apply- (a) to any loan made, any guarantee given or any security provided or any investment made by a banking company, or an insurance company, or a housing finance company in the ordinary course of its business, or a company established with the object of and engaged in the business of financing industrial enterprises, or of providing infrastructural facilities; (b) to any investment- (i) made by an investment company; (ii) made in shares allotted in pursuance of clause (a) of sub-section (1) of sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he expression infrastructure facilities means the facilities specified in Schedule VI. ------------------------------------- Notes:- 1. Inserted vide F. No. 1/13/2013-CL.V-Part - Dated 13-2-2015 , 2. Inserted vide The Companies (Amendment) Act, 2017 Dated 03-01-2018 w.e.f. 07 th May, 2018 3. Substituted vide The Companies (Amendment) Act, 2017 Dated 03-01-2018 w.e.f. 07 th May, 2018, before it was read as, (3) Where the giving of any loan or guarantee or providing any security or the acquisition under sub-section (2) exceeds the limits specified in that sub-section, prior approval by means of a special resolution passed at a general meeting shall be necessary. 4. Substituted vide The Companies (Amendme ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
