The ICSI Bhopal Chapter conducted a webinar on Saturday on Loans Investments Guarantees and Securities Under Section 185, 186 and Reporting.
CS Pranay Patel, Chairman of Bhopal Chapter said that this webinar was taken by CS Makarand Joshi (Mumbai), who is an eminent speaker and practising secretary. This webinar was attended by 40 participants.
The speakers told that the Companies Act, 2013 (Act) has come up with a change in the concept of ‘Loan and Investment by Company. The new Act provides that inter-corporate investments not to be made through more than two layers of investment companies
They also said that it is to be kept in mind that a company can give any loan or give any guarantee or provide security and acquire securities of any Body corporate through Board resolution up to 60% of its paid-up capital, free reserves and security premium account or 100% of its free reserves and security premium whichever is more.
CS Makarand Joshi gave the participants detailed information about section 185, 186 of the Companies Act - 2013 and CARO - 2020.