Inter-company lending compliance requires prescribed application, fee evidence, specified disclosures and board special resolution where applicable. Form 34AA prescribes application requirements for a company proposing to grant a loan: submission to the Department of Company Affairs with fee evidence; disclosure of lending and borrowing company particulars (authorised capital, business, profit/loss history, management and shareholding); specification of proposed loan amount, purpose, interest rate, and security; declaration of any deposit repayment defaults; attachment of a special resolution when passed; and a detailed funds schedule showing subscribed/paid-up capital, free reserves, existing investments, prior loans, the amount proposed and its percentage relation to reserves, followed by an authorised verification.
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Provisions expressly mentioned in the judgment/order text.
Inter-company lending compliance requires prescribed application, fee evidence, specified disclosures and board special resolution where applicable.
Form 34AA prescribes application requirements for a company proposing to grant a loan: submission to the Department of Company Affairs with fee evidence; disclosure of lending and borrowing company particulars (authorised capital, business, profit/loss history, management and shareholding); specification of proposed loan amount, purpose, interest rate, and security; declaration of any deposit repayment defaults; attachment of a special resolution when passed; and a detailed funds schedule showing subscribed/paid-up capital, free reserves, existing investments, prior loans, the amount proposed and its percentage relation to reserves, followed by an authorised verification.
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