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          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

          Provisions expressly mentioned in the judgment/order text.

          <h1>Restrictions on loans to directors: related party financing barred unless member approval and business use conditions met.</h1> Companies are prohibited from advancing loans, book debts, guarantees or securities to directors, relatives, partner firms or other persons in whom a director is interested, subject only to specific statutory exceptions. Permitted financing requires a special resolution with full disclosure and that borrowed funds be used for the borrowing entity's principal business activities; other narrow exemptions cover employment service loans, ordinary course lenders charging market rates, and certain intra group financing. Contraventions attract fines and potential imprisonment for officers and recipient directors.

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