Filing of MGT-14: specified board resolutions and agreements must be filed with the Registrar within the prescribed timeframe.
Companies must file specified resolutions and agreements in MGT-14 with the Registrar within thirty days. The obligation extends to special resolutions, resolutions requiring special majority if not unanimously agreed, class-binding resolutions, Board resolutions under delegated powers (including disposal of undertakings and borrowings exceeding paid-up capital and free reserves), and other prescribed matters. Board resolutions taking note of directors' disclosures (supported by Form MBP-1 disclosures) fall within the reporting framework where Section 179(3) applies. Penalties are prescribed for non-compliance, and transitional rules govern applicability. (AI Summary)

Director lending: statutory interplay permits lending under section 186 compliance while section 185 governs director-related loans.
Section 186 provides the principal regulatory framework for corporate loans, guarantees and investments, permitting such transactions when compliant with its sub sections and forbidding only multi layer investment through more than two investment companies; where Section 186 applies, Section 185 does not operate, though Section 185 remains specifically applicable to loans or guarantees to directors or persons in whom directors are interested and carries separate penal consequences. (AI Summary)

Restriction on corporate loans and investments requires special shareholder resolution and unanimous board consent for excess exposure.
Section 186 restricts corporate loans, guarantees, securities and investments and limits investment layers to two, requiring a special resolution for transactions exceeding prescribed exposure limits. Board approval must be given at a meeting with unanimous consent of directors present and, where applicable, prior approval of the public financial institution if a term loan subsists or defaults have occurred. Loans to wholly owned subsidiaries and certain financing entities are exempt from limits. Companies must maintain a Form MBP-2 register with entries within seven days, kept at the registered office and authenticated by the company secretary. (AI Summary)

Loans to directors restriction imposes strict limits on corporate lending to directors and connected persons, with narrow statutory exceptions.
Section 185 prohibits companies from advancing loans, giving guarantees, providing security or creating book debts for directors or persons in whom directors are interested, including relatives, partners, private companies where the director is member/director, and bodies corporate controlled by specified voting power. Exceptions include loans to MD/WTD under service terms or members' special resolution, ordinary-course lending by companies engaged in lending at or above bank rates, and Rule 10 exemptions for holding company-wholly owned subsidiary support and bank-backed guarantees to subsidiaries, subject to utilisation for principal business activities. Non-compliance attracts corporate fines and penalties against recipient officers, and offences are compoundable. (AI Summary)