INTER CORPORATE LOANS AND INVESTMENTS – SECTION 186 AND 187
INTER CORPORATE LOANS AND INVESTMENTS – SECTION 186 AND 187 APPLICABILITY : Section 186 : - Applicable to all the companies except - Banking companies, NBFC, insurance, financing companies and companies providing infrastructural facilities. Section 187 : - Applicable to all the companies PENALTY: Violation of section 186 – Loan and Investment by Company Company : Rs. 25,000/- – Rs. 5,00,000/- Officer in default : Rs. 25,000/- – Rs. 1,00,000/- and Imprisonment for a term with may extend to 2 years. Violation of section 187 – Investments of company to be held in its own name Company ...
