https://www.taxtmi.com/article/detailed?id=5555 Section 185 broadly prohibits companies from advancing loans, including book debts, or providing guarantees or securities to directors and defined related entities, covering private and public companies. The prohibition applies to directors, directors of holding companies, partners and relatives, firms and private companies associated with such directors, and bodies corporate controlled by them. Narrow exceptions permit loans to managing or whole time directors as part of conditions of service or member approved schemes and lending in the ordinary course of a lending business charging not less than the prescribed bank rate. Contraventions expose the company to fines and the recipient director or related person to criminal and monetary penalties. en-us Sat, 05 Apr 2014 10:17:59 +0530 Sat, 05 Apr 2014 10:17:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=5555 Section 185 broadly prohibits companies from advancing loans, including book debts, or providing guarantees or securities to directors and defined related entities, covering private and public companies. The prohibition applies to directors, directors of holding companies, partners and relatives, firms and private companies associated with such directors, and bodies corporate controlled by them. Narrow exceptions permit loans to managing or whole time directors as part of conditions of service or member approved schemes and lending in the ordinary course of a lending business charging not less than the prescribed bank rate. Contraventions expose the company to fines and the recipient director or related person to criminal and monetary penalties. Articles Corporate Laws / IBC / SEBI Sat, 05 Apr 2014 10:17:59 +0530 https://www.taxtmi.com/article/detailed?id=5555