Clarification with regard to applicability of provision of Section 372A of the Companies Act, 1956

General Circular No. 18/2013, No. 17/202/2013-CL-V, dated 19.11.2013

To

All Registrar of Companies

All Regional Director

This Ministry has received number of representations consequent upon notifying Section 185 of the Companies Act, 2013 dealing with loans to directors which is corresponding to Section 295 of the Companies Act, 1956. Section 186 of the Companies Act, 2013 is yet to be notified.

It is clarified that Section 372A of the Companies Act, 1956 dealing with inter-corporate loans continue to remain in force till Section 186 of the Companies Act, 2013 is notified.

This issues with the approval of competent authority.

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Source: Ministry of Corporate Affairs.