Inter-corporate loans and investments.

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.... is more: Provided that where the aggregate of the loans and investments so far made, the amounts for which guarantee or security so far provided to or in all other bodies corporate, along with the investment, loan, guarantee or security proposed to be made or given by the Board, exceeds the aforesaid limits, no investment or loan shall be made or guarantee shall be given or security shall be provided unless previously authorised by a special resolution passed in a general meeting: Provided further that the Board may give guarantee, without being previously authorised by a special resolution, if,___      (a) a resolution is passed in the meeting of the Board authorising to give guarantee in accordance with the provisi....

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....made or given does not exceed the limit of sixty per cent specified in sub-section (1), if there is no default in repayment of loan instalments or payment of interest thereon as per the terms and conditions of such loan to the public financial institution. (3) No loan to any body corporate shall be made at a rate of interest lower than the prevailing bank rate, being the standard rate made public under section 49 of the Reserve Bank of India Act, 1934 (2 of 1934). (4) No company, which has defaulted in complying with the provision of section 58A, shall, directly or indirectly,___      (a) make any loan to any body corporate;      (b) give any guarantee, or provide security, in connection with a lo....

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....ll be kept at the registered office of the company concerned and___      (a) shall be open to inspection at such office; and      (b) extracts may be taken therefrom and copies thereof may be required, by any member of the company to the same extent, in the same manner, and on payment of the same fees as in the case of the register of members of the company; and the provisions of section 163 shall apply accordingly. (7) The Central Government may, prescribe guidelines for the purposes of this section.___ (8) Nothing contained in this section shall apply,___      (a) to any loan made, any guarantee given or any security provided or any investment made by    &nbs....

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....urity has been given, or provided by the company, has been repaid in full, no punishment by way of imprisonment shall be imposed under this sub-section, and where such loan has been repaid in part, the maximum punishment which may be imposed under this sub-section by way of imprisonment shall be appropriately reduced: Provided further that all persons who are knowingly parties to any such contravention shall be liable, jointly and severally, to the company for the repayment of the loan or for making good the same which the company may have been called upon to pay by virtue of the guarantee given or the securities provided by such company. (10) If default is made in complying with the provisions of sub-section (5), the company and every of....