Section 372A of the Companies Act, 1956 (The Act) deals with intercorporate Loan, Investment, Guarantee and Securities in connection with loan. All the four transactions are frequently taken place in any company and henceforth the section becomes more important and therefore it requires to special heed by virtue of strict penal provisions and because of no much space to play.
Scope of Section 372A
- When a company makes a loan to any other body corporate
- When a company acquires the securities of any other body corporate
- When a company gives any guarantee or provides any security to
(i) Any person who gives a loan to any body corporate or
(ii) A body corporate, which gives a loan to any other person.
For further analysis of this section, click on this link below:
Posts
0 comments:
Post a Comment