Applicable of Section 185 for intercorporate deposit

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..... Applicable of Section 185 for intercorporate deposit
Query (Issue) Started By: - Bhairob Chandra Bor Dated:- 6-5-2014 Last Reply Date:- 15-5-2014 Corporate Laws / SEBI / LLP
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Co .....

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..... mpanies Law
Dear Sir, we need your kind advice from the following facts: 1. we have an intercompany deposit of Rs.5 cr 2. both the company is a Limited company (not a Pvt.Ltd Co.) 3. one direct .....

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..... or is common for both the companies is the Section 185-loan to director etc. applicable in our case? If applicable what will be procedures to stay safe from the statutory point view? Kind Regards, .....

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..... BCB Reply By Debtosh Dey: The Reply: Inter corporate deposit does not automatically become loan to director u/s 185 even if one or more directors are common. Reply By sanjeev bajaj: The Reply: sec .....

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..... 185 is applicable in this case, please read explanation. Reply By Debtosh Dey: The Reply: Inter-corporate loan attracts sec 185 only if the borrower is a holding co or pvt co with a common director .....

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..... or a body corporate where lender controls atleast 25 percent voting power or otherwise directions/ instructions. In the instant case, the borrower is not a pvt co. It needs to be seen whether any of .....

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..... the other conditions apply (These are not stated in the query). If it applies, then sec 185 is attracted. Otherwise not. Debtosh Dey
Discussion Forum - Knowledge Sharing .....

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