Section 186 (2) of the Companies Act 2013
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CS Shiriti /
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18-Jan-2020 06:57 AM /
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As per section 186 (2) of the Companies Act 2013:
No company shall directly or indirectly —
(a) give any loan to any person or other body corporate;
(b) give any guarantee or provide security in connection
with a loan to any other body corporate or person;
and Loan and investment by company.
(c) acquire by way of subscription, purchase or otherwise,
the securities of any other body corporate,
1. Are employees and workers of the company covered
under the term “Person” used in the section?
2. Will Salary advances made by the Company for only
1 or 2 months (without interest) come in the preview
of “Loan”?
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