Giving India Inc some more months to grant loans to directors or make fresh investments in their step-down subsidiaries, the ministry of corporate affairs (MCA) has clarified that provisions of inter-corporate loans as per the old Company Act of 1956 will remain in force till the corresponding section of the new law is notified.According to MCA officials, the clarification became a necessity after the ministry received a number of representation from companies seeking clarity on two sections — Section 185 and Section 186 — of the new Companies Act, 2013, one of which was notified on September 12 along with the 97 sections leading to the confusion.

Source : http://www.financialexpress.com/news/mca-clears-the-air-on-investments-in-subsidiaries/1200403

 

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