Loan by company

[Asked by Guest]

Hello Sir,

1. I have query regarding loan by company. What are the companies act restriction in providing loan to any company, directors or shareholders.

2. I have read loan given by wholly owned subsidiary co to holding co is exempt. In such case what is WOS co. Let us take an example A and B. A have 99% shares of B ltd. So B is wholly owned subsy of A or it have to acquire 100% shares.

Thanks

AI Summary

Company loan restrictions: scope of statutory limits on related-party lending and the definition of wholly owned subsidiary questioned.
Query concerning statutory limits under the Companies Act on loans by a company to directors, shareholders or other companies, including compliance and exception rules, and whether a subsidiary with near-total shareholding qualifies as a wholly owned subsidiary for intra-group loan exemptions.