Inter-corporate loans -Whether provisions of sub-section (1) have to be complied with by exempted companies on their ceasing to be so

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....d companies on their ceasing to be so Any loan made, guarantee given or security provided by the above mentioned exempted companies would not require compliance of section 370(1) inasmuch as no special resolution or, as the case may be, prior approval of the Central Government/Company Law Board is necessary in such cases. If, however, by occurrence of certain events, i.e., when a private company ....

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....aw Board has now been advised that the provisions of section 370(1) would become applicable to such transactions immediately after the lending company ceases to be an exempted company under the provisions of section 370(2) and, therefore, the compliance with the provisions of the said section would be required if such loans, guarantees and securities are continued after the exemption under section....