The MCA clarifies applicability of lending norms on loans and/or advances to employees
The Ministry of Corporate Affairs (MCA) has been issuing various amendments and clarifications to the Companies Act, 2013 (the Act) and the corresponding Rules to remove hardships faced by companies while implementing certain provisions of the Act.
The MCA has received a number of references seeking clarification on the applicability of section 185 and 186 of the Act relating to grant of loans and/or advances by companies to their employees.
Our First Notes summarises the important aspects arising from the general circular issued by the MCA on 10 March 2015. For the text of the circular issued by the MCA, please click here.
© 2020 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
KPMG (Registered) (a partnership firm with Registration No. BA- 62445) converted into KPMG Assurance and Consulting Services LLP (a Limited Liability partnership firm) with LLP Registration No. AAT-0367 with effect from July 23, 2020.
For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.