TaxTMI 
TaxTMI 
TaxTMI 
Loan and investment by company
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.... any rule or regulation framed under any law for the time being in force. (2) No company shall directly or indirectly - (a) give any loan to any person or other body corporate; (b) give any guarantee or provide security in connection with a loan to any other body corporate or person; and (c) acquire by way of subscription, purchase or otherwise, the securities of any other body corporate, exceeding sixty per cent. of its paid-up share capital, free reserves and securities premium account or one hundred per cent. of its free reserves and securities premium account, whichever is more. 2[Explanation.-For the purposes of this sub-section, the word "person" does not include any individual who is in the employment of the company.] 3[(3)....
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....oard with the consent of all the directors present at the meeting and the prior approval of the public financial institution concerned where any term loan is subsisting, is obtained: Provided that prior approval of a public financial institution shall not be required where the aggregate of the loans and investments so far made, the amount for which guarantee or security so far provided to or in all other bodies corporate, along with the investments, loans, guarantee or security proposed to be made or given does not exceed the limit as specified in sub-section (2), and 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. (6) No ....
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....y loan made, any guarantee given or any security provided or any investment made by a banking company, or an insurance company, or a housing finance company in the ordinary course of its business, or a company established with the object of and engaged in the business of financing industrial enterprises, or of providing infrastructural facilities; (b) to any investment- (i) made by an investment company; (ii) made in shares allotted in pursuance of clause (a) of sub-section (1) of section 62 or in shares allotted in pursuance of rights issues made by a body corporate; (iii) made, in respect of investment or lending activities, by a non-banking financial company registered under Chapter III-B of the Reserve Bank of India Act, 1934 (2....
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.... w.e.f. 07-05-2018 (Notified vide Notification No. S.O. 1833 (E) dated 07-05-2018) 3. Substituted vide Section 62 of the Companies (Amendment) Act, 2017 w.e.f. 07-05-2018 (Notified vide Notification No. S.O. 1833 (E) dated 07-05-2018) before it was read as, "(3) Where the giving of any loan or guarantee or providing any security or the acquisition under sub-section (2) exceeds the limits specified in that sub-section, prior approval by means of a special resolution passed at a general meeting shall be necessary." 4. Substituted vide Section 62 of the Companies (Amendment) Act, 2017 w.e.f. 07-05-2018 (Notified vide Notification No. S.O. 1833 (E) dated 07-05-2018) before it was read a....