Can subsidiary company give loan, provide security or guarantee in favour of its holding company?

Is LLP included in the definition of Firm under clause b of Explanation to sub-section 1 of section 185. i.e., can a private limited company (not exempted by the recent notification) grant loan to a LLP in which a director of the Company is a designated partner.

Can a Private limited company gives loans to a partnership firm in which one of the directors of its holding company are partner.

What does the omission of Rule 10 of Company (Meeting of Board and its Power) Second Amendment Rules, 2015 issued on 14 th dec. 2015 means? Is the exemption over which was enjoyed by Holding and its WOS companies. Pls clarify

Whether Security Deposit given to Director for taking his premises on rent will attract section 185? Pl. Guide Thanks in Advance

Whether Security Deposit given to Director for taking his premises on rent will attract section 185? Pl. Guide Thanks in Advance

As per Section 185 (1) Explanation to clause (c) i.e. for IFSC Private Limited /Public Limited Co, it states that "the expression “to any other person in whom director is interested” means- (c) any private company of which any such director is a director or member in which director of the lending company do not have direct or indirect shareholding through themselves or through their relatives and a special resolution is passed to this effect;”. Now what is the exact impact of such amendment as introduced for IFSC Companies. Why a special resolution is required.

"Section 185 shall not apply to private limited Company in whose share capital no other body corporate has invested money" How the above text shall be interpreted ? either as (i) No other body corporate have invested in the shareholding of the company till date at all will qualify for exemption OR (ii) where presently no other body corporate is holding any shares in the private Company may be in past was holding shares. According to me option (i) , everyone's view solicited. Thanks in anticipation.

The company is a private limited company and has given guarantee for the company having common director. At the time of giving guarantee, the company did not have the corporate body shareholders and hence was exempt from section 185. However, now the company wish to issue shares to corporate body. Will this have any impact on the guarantee already given? Thanks in advance.

what do v mean by the term " loan represented by book debt" under section 185? please clarify.

Loan by Given by Holding Company to Subsidiary company prior to 13-09-2013 & covered under section 185. Whether such loans need to be repaid prior to 13-09-2013 . Whether there is any Transition provision.

Section 185 says: No company can give loan to directors/person interested in directors including loan by way of book debt. So if one want to sell goods on credit to other private limited company (the directors and some shareholders are same) then is it possible under new Act ? Section 188: Related Party transaction is also related to same as it says : Company can enter in to any contract to sell goods or services to related prices with the Board Resolution (in some cases with special resolution) and this permission only to be taken when price is not arm length price. So section 188 permits company to sell goods (on cash/credit) to related party subject to Board/Special Resolution. Is this both section conflicting ? Kindly give views/replies on this.

As per new companies act, can public limited company provide corporate guarantee to its subsidiary (public limited company) for availing loan??

complete explanation to ordinary course of business

There are outstanding amounts of unsecured loans out of the agreements prior to 12/09/2013, in a private limited company. Can it continue? Further, the agreement cites an upper limit which can be extended in one or more trench. If the upper limit of the amount is not reached, can it extend the loan, though it falls under the purview of 185.

Can a Director obtain loan from his Private Limited Company?

Loan by Given by Holding Company to Subsidiary company prior to 13-09-2013 & covered under section 185. Whether such loans need to be repaid prior to 13-09-2013 . Whether there is any Transition provision.

Under Section 185 – Can a Private Limited Company give any guarantee to other private limited company in which directors are same? Please clarify.

Under Section 185 – Can a Private Limited Company give any guarantee to other private limited company in which one Shareholder is same? Please clarify.

Under Section 185 – Can a Private Limited Company give any guarantee to other private limited company in which directors/shareholders are NOT SAME but relatives as per definition of section 2 (77) of Companies Act, 2013? Please clarify.

Under 185 (1) explanation (c), does the words "private company" also include a private company which is a subsidiary of public limited company. Pls clarify at the earliest.

In view of the clarification received from MCA vide General Circular 05/2015 dated 30.0.3.2015, can we conclude that any Inter Corporate Deposits wherein the Directors are interested received prior to the notification of the section 185 i.e 12.09.2013 are also exempted ??

In view of latest notifiction dt. 05/06/2015 where one Private Limited can give loan to other wheein the directors are common?

The issue is : one private Limited company say A gives loan to another Private Limited company say B. Both this company have no common Director or shareholder, but the Directors of the One company is relative of others and further B is the shareholder of A limited ( Not to the extent of associate company). Now is A private Limited is giving loan to B Private Limited my opinion 1. A Private limited and B Private Limited is not related party. ( sec (2) (76) 2. Section 185- not applicable. ( as Director of one company is not Director or member in other company.) 3. Section 184(2) not applicable ( same logic as above) 4. Section 188 is not applicable ( as not related party) 5. and thus not cover u/s 189 thus transaction is not required to report in CARO for loan granted to parties listed in 189 it may coverunder u/s 186 as far as other provision is concern. please give ur expert opinion on the matter.

a NBFC co.had given loan to director out standing as on 30/08/2013 and continued till date whether it is necessary to charge interest @ Bank rate as per New co act or continue @less than bank rate till 31 March 2014

Loan by Given by Holding Company to Subsidiary company prior to 13-09-2013 & covered under section 185. Whether such loans need to be repaid prior to 13-09-2013 . Whether there is any Transition provision.

Sir / Madam, As per exemption available u/s 185 - X Private Limited company has advanced loans to its directors. X Private Limited is to be taken over by the Y Private Limited to make it Y's subsidiary. After taken over by Y Pvt Ltd. whether it is a violation of section 185 for earlier advances ? OR Will it be ban for future advances to directors ? Kindly reply.

Whether Wholly owned subsidiary / subsidiary (with common Directors) can give loan to its Holding Company?

A director in a private company is also a director in another private company (common directorship) and he disclosed his interest pursuant to Sec.184(1) of Companies Act, 2013. If any one Company is providing loans or advances to other Private Companies in which Director is interested, In such case, whether lending company is required to Comply with the exemption given to private Company under section 185 of Companies Act, 2013 or not ??? if in case both Companies are public Company , whether they can enter into such transaction (i.e. Loans & Advances) if Directors are Common ??