Till now Section 185 as amended by Companies (Amendment) Act, 2017 has not notified by the Central Government, this article with the hope that the reader will get ready reference for changes. Note : we have used the term loans for the term “any loan represented by a book debt, or give any guarantee or provide any security in connection with any loan taken” just for ease of understanding. Sub Section (1) of Section 185 of the Companies Act, 2013 says that a company cannot advance loans to (*) any director of the company, (*) any director of the holding company, (*) any partner or relative of any such above mentioned director; or (*) any firm in which any such director or relative is a partner. But (2) A company may advance any loans to :- a) any private company of which any such director is a director or member; b) anybo...
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