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Question
The provisions relating to inter-corporate loans are inter-alia laid down in :
The provisions relating to inter-corporate loans are inter-alia laid down in :
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Solution
The correct option is A Section 370 of the Companies Act 1956
As per Section 370 of the companies Act, 1956 had provisions related to inter-corporate loans. According to this section No
company (the lending company") shall make any loan to, or give any
guarantee, or provide any security, in connection with a loan made by any other
person to, or to any other person by, anybody corporate, unless the making of
such loan, the giving of such guarantee or the provision of such security has
been previously authorized by a special resolution of the lending company.
Further, Section 370 of companies Act 1956 has been replaced by Section 186 of New Companies Act 2013
As per Section 370 of the companies Act, 1956 had provisions related to inter-corporate loans. According to this section No company (the lending company") shall make any loan to, or give any guarantee, or provide any security, in connection with a loan made by any other person to, or to any other person by, anybody corporate, unless the making of such loan, the giving of such guarantee or the provision of such security has been previously authorized by a special resolution of the lending company.
Further, Section 370 of companies Act 1956 has been replaced by Section 186 of New Companies Act 2013
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