Clarification with regard to applicability of provision of Section 372A of Companies Act, 1956
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, the Ministry has received several representations.
Ministry of Corporate Affairs has 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.
Ministry of Corporate Affairs Circular No. ,Dated: November 19 2013.