https://www.taxtmi.com/acts?id=15620 Companies are prohibited from advancing any loan, guarantee or security to a director or to persons in whom a director is interested, subject to exceptions for managing or whole-time directors under conditions of service or member approved schemes and for lending by companies in the ordinary course of their business with interest charged at or above bank rates. The statute defines interested persons to include relatives, partners, related firms and controlled or directed corporate entities. Breach of the prohibition renders the company and recipient liable to penal consequences, including fines and imprisonment. en-us Wed, 21 Dec 2011 18:52:35 +0530 Wed, 21 Dec 2011 18:52:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/acts?id=15620 Companies are prohibited from advancing any loan, guarantee or security to a director or to persons in whom a director is interested, subject to exceptions for managing or whole-time directors under conditions of service or member approved schemes and for lending by companies in the ordinary course of their business with interest charged at or above bank rates. The statute defines interested persons to include relatives, partners, related firms and controlled or directed corporate entities. Breach of the prohibition renders the company and recipient liable to penal consequences, including fines and imprisonment. Act-Rules Bills Wed, 21 Dec 2011 18:52:35 +0530 https://www.taxtmi.com/acts?id=15620