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2014 Views 3 Ans

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.

Section 185- Loan to directors, etc.

Posted By: Aakanksha 9 year(s) ago

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Expert Ankit Singhi

What is the shareholding of Director in the company?

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Aakanksha

He along with the other designated partner holds more than 60% in the Company.

VenkadasalamV

LLP will be considered as Body Corporate and sec 185 is applicable to a loan granted to a body corporate

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Aakanksha

since there is no general meeting in an LLP, how will clause c apply.

KR Sampath

If the exemption now provided is not applicable and if the conditions in the proviso to section 185(1) also not aplicable, the loan canot be given by the private company.

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