Related-party assistance exception: holding companies may lend to or guarantee loans for wholly owned subsidiaries if used for principal business. Amendment permits a holding company to lend to its wholly owned subsidiary or give guarantees or security for loans to that subsidiary, and to give guarantees or security for loans by banks or financial institutions to its subsidiary, provided such loans are utilised by the subsidiary for its principal business activities.
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.
Related-party assistance exception: holding companies may lend to or guarantee loans for wholly owned subsidiaries if used for principal business.
Amendment permits a holding company to lend to its wholly owned subsidiary or give guarantees or security for loans to that subsidiary, and to give guarantees or security for loans by banks or financial institutions to its subsidiary, provided such loans are utilised by the subsidiary for its principal business activities.
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