Rule 10 Loans to Director etc. under section 185
- Chapter
- III · Powers of the Board
1Text omitted by amendmentRule 10 omitted by G.S.R. 971(E), dated 14th December, 2015 (Companies (Meetings of Board and its Powers) Second Amendment Rules, 2015), w.e.f. 14th December, 2015. Prior to omission, the rule read: "10. Loans to Director etc. under section 185.- (1) Any loan made by a holding company to its wholly owned subsidiary company or any guarantee given or security provided by a holding company in respect of any loan made to its wholly owned subsidiary company is exempted from the requirements under this section; and (2) Any guarantee given or security provided by a holding company in respect of loan made by any bank or financial institution to its subsidiary company is exempted from the requirements under this section: Provided that such loans made under sub-rule (1) and (2) are utilised by the subsidiary company for its principal business activities."
1. Rule 10 omitted by G.S.R. 971(E), dated 14th December, 2015 (Companies (Meetings of Board and its Powers) Second Amendment Rules, 2015), w.e.f. 14th December, 2015. Prior to omission, the rule read: "10. Loans to Director etc. under section 185.- (1) Any loan made by a holding company to its wholly owned subsidiary company or any guarantee given or security provided by a holding company in respect of any loan made to its wholly owned subsidiary company is exempted from the requirements under this section; and (2) Any guarantee given or security provided by a holding company in respect of loan made by any bank or financial institution to its subsidiary company is exempted from the requirements under this section: Provided that such loans made under sub-rule (1) and (2) are utilised by the subsidiary company for its principal business activities."