9911796707
TMI BlogLoans to directors, etc.X X X X Extracts X X X X X X X X Extracts X X X X ..... or or relative is a partner; (c) any private company of which any such director is a director or member; (d) any body corporate at a general meeting of which not less than twenty-five per cent of the total voting power may be exercised or controlled by any such director, or by two or more such directors, together; or (e) any body corporate, the Board of directors, managing director [2] [* * *] or manager whereof is accustomed to act in accordance with the directions or instructions of the Board, or of any director or directors, of the lending company. [3] [(2) Sub-section (1) shall not apply to ___ (a) any loan made, guarantee given or security provided ___ (i) by a private company unles ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with which any such guarantee or security has been given or provided by the lending company, has been repaid in full, no punishment by way of imprisonment shall be imposed under this sub-section; and where the loan has been repaid in part, the maximum punish ment which may be imposed under this sub-section by way of imprisonment shall be proportionately reduced. (5) All persons who are knowingly parties to any contravention of sub-section (1) or (3) shall be liable, jointly and severally, to the lending company for the repayment of the loan or for making good the sum which the lending company may have been called upon to pay in virtue of the guarantee given or the security provided by such company. (6) No officer of the lending company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (c) any guarantee given or security provided ___ (i) by a holding company in respect of any loan made to its subsidiary or (ii) by company which is the managing agent or secretaries and treasures of another company in respect of any loan made to that other company [5] Substituted by the Companies (Amendment) Act, 2000, w.e.f. 13-12-2000. Prior to their substitution, clauses (b) and (c) read as under: (b) any loan made___ (i) by a holding company to its subsidiary, or (ii) by accompany which is the managing agent or secretaries and treasures of another company to that other company; (c) any guarantee given or security provided___ (i) by a holding company in r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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