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To enter into a transaction specified in Section 186 of the Companies Act, you have to take the following steps:
- Take prior approval of members by special resolution in case the ceiling exceeds specified limits as above.
- File return with ROC in Form MGT 14 with copy of special resolution.
- Take prior approval of...
Wazzeer Professional Network
ProfessionalWhat is the procedure of entering into transactions specified for loan and investment by the company under section 186 of the companies act?
-
Wazzeer Professional Network
ProfessionalTo enter into a transaction specified in Section 186 of the Companies Act, you have to take the following steps:
- Take prior approval of members by special resolution in case the ceiling exceeds specified limits as above.
- File return with ROC in Form MGT 14 with copy of special resolution.
- Take prior approval of public financial institutions in case any term loan is subsisting and there is any default in repayment of loans and/or payment of interest or if the total amount of specified transactions is exceeding limit as specified above.
- Pass Board resolution in a meeting with the approval of all directors present in the meeting.
- Make disclosure, in the financial statements, of the full particulars of the loans given, investment made or guarantee given or security provided and the purpose for which the loan or guarantee or security is proposed to be utilized by the recipient of the loan or guarantee or security.
Enter particulars of loans/guarantees/security/investments into register maintained for this purpose at the registered office, which shall be open for inspection and extracts may be taken by members on payment of prescribed fee.
almost 4 years ago
View answer
What is the procedure of entering into transactions specified for loan and investment by the company under section 186 of the companies act?
-
Wazzeer Professional Network
ProfessionalTo enter into a transaction specified in Section 186 of the Companies Act, you have to take the following steps:
- Take prior approval of members by special resolution in case the ceiling exceeds specified limits as above.
- File return with ROC in Form MGT 14 with copy of special resolution.
- Take prior approval of public financial institutions in case any term loan is subsisting and there is any default in repayment of loans and/or payment of interest or if the total amount of specified transactions is exceeding limit as specified above.
- Pass Board resolution in a meeting with the approval of all directors present in the meeting.
- Make disclosure, in the financial statements, of the full particulars of the loans given, investment made or guarantee given or security provided and the purpose for which the loan or guarantee or security is proposed to be utilized by the recipient of the loan or guarantee or security.
Enter particulars of loans/guarantees/security/investments into register maintained for this purpose at the registered office, which shall be open for inspection and extracts may be taken by members on payment of prescribed fee.
almost 4 years ago
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