Clarification with regard to section 185 and 186 of the Companies Act 2013 - loans and advances to employees
Clarification with regard to section 185 and 186 of the Companies Act 2013 - loans and advances to employees
The
Ministry of Corporate Affairs has issued the captioned circular exempting
application of Section 186 for Loans & Advances made to Employees (other
than MD / WTD) provided the same are given as per the conditions of service or
remuneration policy.
This is
a welcome move which will allow subsidized loans to employees but it also
raises following doubts-
- Subsidized loans will be available to employees but will it not be available to MD / WTD?
- Pursuant to this circular, monetary ceiling u/s 186(2) need not be reckoned for employee loans but will it need to be reckoned for MD / WTD loans?
Read
Circular at: http://www.mca.gov.in/ Ministry/pdf/Circular_04_ 10032015.pdf
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