Whether the section is applicable even though loans made by exempted companies ceased to be so - Companies Law - No. 13/98/CL-VI/67,

Circular : No. 13/98/CL-VI/67, dated 24 ‑ 2 ‑ 1971. Subject:- Whether the section is applicable even though loans made by exempted companies ceased to be so The question whether any loans made, guarantee given or security provided by the exempted companies mentioned in section 295(2) and section 370(2), as the case may be, would require the approval of the Company Law Board for the continuance of such loan, guarantee or security after the exemption provided has ceased to be operative, has been reconsidered and this Department has now been advised that the provisions of section 295 or 370, as the case may be, would not be applicable to the loans made, guarantee given or securities provided by the exempted companies even though they cease to be so and the compliance of section 295 or 370, as the case may be, would not be required, if such loans, guarantee or securities are continued after the exemption under sub‑section (2) of section 295 or sub‑section (2) of section 370, as the case may be, ceased to exist.