https://www.taxtmi.com/article/detailed?id=5636 Section 185 prohibits companies from advancing loans, giving guarantees, providing security or creating book debts for directors or persons in whom directors are interested, including relatives, partners, private companies where the director is member/director, and bodies corporate controlled by specified voting power. Exceptions include loans to MD/WTD under service terms or members' special resolution, ordinary-course lending by companies engaged in lending at or above bank rates, and Rule 10 exemptions for holding company-wholly owned subsidiary support and bank-backed guarantees to subsidiaries, subject to utilisation for principal business activities. Non-compliance attracts corporate fines and penalties against recipient officers, and offences are compoundable. en-us Tue, 27 May 2014 19:21:33 +0530 Tue, 27 May 2014 19:21:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=5636 Section 185 prohibits companies from advancing loans, giving guarantees, providing security or creating book debts for directors or persons in whom directors are interested, including relatives, partners, private companies where the director is member/director, and bodies corporate controlled by specified voting power. Exceptions include loans to MD/WTD under service terms or members' special resolution, ordinary-course lending by companies engaged in lending at or above bank rates, and Rule 10 exemptions for holding company-wholly owned subsidiary support and bank-backed guarantees to subsidiaries, subject to utilisation for principal business activities. Non-compliance attracts corporate fines and penalties against recipient officers, and offences are compoundable. Articles Corporate Laws / IBC / SEBI Tue, 27 May 2014 19:21:33 +0530 https://www.taxtmi.com/article/detailed?id=5636