Companies Act

Section 378ZK. Loan, Etc., To Members

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–

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

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(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:

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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.]

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1. Ins. by Act 29 of 2020, s. 52 (w.e.f. 11-2-2021).