Sundar kambam

Effective April 1, 2014: Rule 10 of the Companies ( Meetings of Board and its powers) Rules, 2014 states that the loans / guarantees given / provided by a holding company in respect of the loan given by it or by any bank or financial institution to its wholly owned subsidiary company/ subsidiary company is exempted from the requirements of section 185, provided that such loans made under sub-rule (1) and (2) are utilised by the subsidiary company for its principal business activities. Thus there is still a gap between 12th September 2013 when the section 185 starts and 1st april 2014 when the exemption under the rules kicks off.