TaxTMI 
TaxTMI 
Loans, etc., to companies under the same management.
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....the prior approval of the Central Government (a) ^[4][such percentage of the aggregate of the subscribed capital of the lending company and its free reserves as may be prescribed] where all such other bodies corporate are not under the same management as the lending company; (b) ^[5][such percentage of the aggregate of the subscribed capital of the lending company and its free reserves as may be prescribed] where all such other bodies corporate are under the same management as the lending company. ^[6][Explanation] I. If a special resolution has been passed by the lending company authorising the making of loans up to the limit of ^[7][the percentage of the aggregate specified in clause (a), or as the case may be, the percentage of the aggre­gate specified in clause (b) of the second proviso], then, no further special resolution or resolutions shall be deemed to be necessary for the making of any loan or loans within such limit.] ^[8][Explanation II. If a special resolution has been passed by the lending company authorising the Board of directors to give any guarantee or provide any security up to a limit specified in....
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....ther with their relatives, the majority of shares in the other body corporate.] ^[19][(1C) Every lending company shall keep a register showing^___ (a) the names of all bodies corporate under the same management as the lending company and the name of every firm in which a partner is a body corporate under the same management as the lending company, and (b) the following particulars in respect of every loan made, guarantee given or security provided by the lending company ^[20][in relation to any such body corporate] under this section, (i) the name of the body corporate to which the loan has been made whether such loan has been made before or after that body corpo­rate came under the same management as the lending company, (ii) the amount of the loan, (iii) the date on which the loan has been made, (iv) the date on which the guarantee has been given or security has been provided in connection ....
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....; (iv) by a private company, unless it is a subsidiary of a public company; ^[27][or] (v) by a company established with the object of financing industrial enterprises;] (b) any guarantee given or any security provided^___ (i) by a holding company in respect of any loan made to its subsidiary; or ^ [28][(ii) * * *] ^ [29][(iii) by a banking company, or an insurance company, in the ordinary course of its business; or (iv) by a private company, unless it is a subsidiary of a public company; or (v) by a company established with the object of financing industrial enterprises.] (3) Nothing in this section shall apply to a book debt unless the transaction represented by the book debt was from its ince....
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....dment) Act, 1988, section 50 w.e.f. 17-4-1989, for the words "thirty per cent of the aggregate specified in clause (a), or, as the case may be, of twenty per cent of the aggregate specified in clause (b), of the second proviso". [8] Inserted by the Companies (Amendment) Act, 1966, Act 34 of 1966, section 3, w.e.f. 1-4-1967. [9] Inserted by the Companies (Amendment) Act, 1960, Act 65 of 1960, section 135. [10] Explanation to sub-section (1) numbered and lettered as sub-section (1B) by the Companies (Amendment) Act, 1960, Act 65 of 1960, section 135. [11] Substituted by section 135, for "For the purposes of this sub-section". By the Companies (Amendment) Act, 1960, 65 of 1960. [12] Reference to managing agent, secretaries and treasurers redundant after abolition of the system by Act 17 of 1969, w.e.f. 3-4-1970. These should also have been omitted. [13] Reference to managing agent, secretaries and treasurers redundant after abolition of the system by Act 17 of 1969, w.e.f. 3-4-1970. These should also have been omitted. [14] Reference to managing agent, secretaries and treasurers redundant after abolition of the system by Act 17 of 1969, w.e.f. 3-4-1970. These shou....