Approval of Central Government under section 295 not required for purpose of grant of house building loan to managing directors/whole-time directors

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..... ing directors/whole-time directors Section 295 of the Companies Act, 1956, prohibits a public company and a private company which is a subsidiary of a public company from making a loan to its directors, etc., without prior approval of the Central Government. This Department has formulated guidelines for the grant of house building loans by such companies to their managing director/whole-time dire .....

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..... house building loans to their managing director/whole-time directors without obtaining prior approval of the Central Government under section 295 of the Companies Act, 1956, on such terms and conditions as are applicable to its officers/employees. The approval of the Central Government will, however, be necessary in the case of companies having no such scheme or where the house building loan prop .....

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