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Section 185 - An indepth analysis
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Posted on:
03/01/2014
With the 98 Sections of the Companies Act, 2013 becoming effective from September 12, 2013 onwards, one section which has been the hottest topic for discussion amongst Corporates and professionals is Section 185 of the Companies Act, 2013 which deals with Loans to Directors etc. The section particularly prohibits grant of any loans, giving of guarantee or providing of any security to the directors or any other person in whom the director is interested; otherwise than for given exemptions. It is interesting to note that per se the Companies Act, 2013 is said to be more of self regulatory and liberal as compared to Companies Act, 1956 however, this Section 185 is one section which seems to be more stringent that its previous counterpart. The provisions of Section 185 of the Companies Act, 2013 with corresponds to Section 295 of the Companies Act, 1956 provides that:-
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