Companies Act

Section 378ZK. Loan, Etc., To Members

Companies Act, 2013

1[378ZK. Loan, etc., to Members.– The Board may, subject to the provisions made in articles, provide financial assistance to the Members of the Producer Company by way of–


(a) credit facility, to any Member, in connection with the business of the Producer Company, for a period not exceeding six months;


(b) loans and advances, against security specified in articles to any Member, repayable within a period exceeding three months but not exceeding seven years from the date of disbursement of such loan or advances:


Provided that any loan or advance to any director or his relative shall be granted only after the approval by the Members in general meeting.]


References

  1. Ins. by Act 29 of 2020, s. 52 (w.e.f. 11-2-2021).
READ  Section 206. Power To Call For Information, Inspect Books And Conduct Inquiries

Trending Posted