Holding company guarantee exemption continues for loans to subsidiaries used for principal business until statutory notification. The Ministry clarifies that, until the Companies Act, 2013 provisions are notified, the exemption in clause (d) of sub section (8) of Section 372A, 1956 shall apply to guarantees or securities provided by a holding company for loans advanced by banks or financial institutions to its subsidiary, provided such loans are exclusively utilized 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.
Holding company guarantee exemption continues for loans to subsidiaries used for principal business until statutory notification.
The Ministry clarifies that, until the Companies Act, 2013 provisions are notified, the exemption in clause (d) of sub section (8) of Section 372A, 1956 shall apply to guarantees or securities provided by a holding company for loans advanced by banks or financial institutions to its subsidiary, provided such loans are exclusively utilized by the subsidiary for its principal business activities.
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