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Rule 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:
Proviso

Provided that such loans made under sub-rule(1) and (2) are utilised by the subsidiary company for its principle business activities.

Notes, amendments & references (1)

10. Loans to Director etc. under section 185.- Rule 10 omitted vide Companies (Meetings of Board and its Powers) Second Amendment Rules, 2015. To view the Notification, Click Here