Loans to directors, etc.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....) any firm in which any such director or relative is a partner;      (c) any private company of which any such director is a director or member;      (d) any body corporate at a general meeting of which not less than twenty-five per cent of the total voting power may be exercised or controlled by any such director, or by two or more such directors, together; or      (e) any body corporate, the Board of directors, managing director [2][* * *] or manager whereof is accustomed to act in accordance with the directions or instructions of the Board, or of any director or directors, of the lending company. [3][(2) Sub-section (1) shall not apply to___      (a) any....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....loan is made or who has taken the loan in respect of which the guarantee is given or the security is provided, shall be punishable either with fine which may extend to [6][fifty thousand rupees] or with simple imprisonment for a term which may extend to six months: Provided that where any such loan, or any loan in connection with which any such guarantee or security has been given or provided by the lending company, has been repaid in full, no punishment by way of imprisonment shall be imposed under this sub-section; and where the loan has been repaid in part, the maximum punish­ment which may be imposed under this sub-section by way of imprisonment shall be proportionately reduced. (5) All persons who are knowingly parties to any con....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....w.e.f. 13-12-2000. Prior to their substitution, clauses (b) and (c) read as under:      "(b) any loan made___           (i) by a holding company to its subsidiary, or           (ii) by accompany which is the managing agent or secretaries and treasures of another company to that other company;      (c) any guarantee given or security provided___           (i) by a holding company in respect of any loan made to its subsidiary or           (ii) by company which is the managing agent or secretaries and treasures of another....