{"id":104232,"date":"2021-09-11T17:35:35","date_gmt":"2021-09-11T12:05:35","guid":{"rendered":"https:\/\/legalwindow.in\/?p=104232"},"modified":"2022-04-25T14:25:55","modified_gmt":"2022-04-25T08:55:55","slug":"loan-to-directors-under-section-185-of-companies-act-2013","status":"publish","type":"post","link":"https:\/\/www.legalwindow.in\/blog\/loan-to-directors-under-section-185-of-companies-act-2013\/","title":{"rendered":"Loan to Directors under Section 185 of Companies Act, 2013"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-104234 size-full\" src=\"https:\/\/legalwindow.in\/wp-content\/uploads\/Loan-to-Directors-under-Section-185-of-Companies-Act-2013.png\" alt=\"Loan to Directors under Section 185 of Companies Act, 2013\" width=\"1200\" height=\"630\" srcset=\"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Loan-to-Directors-under-Section-185-of-Companies-Act-2013.png 1200w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Loan-to-Directors-under-Section-185-of-Companies-Act-2013-600x315.png 600w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Loan-to-Directors-under-Section-185-of-Companies-Act-2013-300x158.png 300w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Loan-to-Directors-under-Section-185-of-Companies-Act-2013-1024x538.png 1024w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Loan-to-Directors-under-Section-185-of-Companies-Act-2013-768x403.png 768w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p>It is said that shareholders are owners of the company. However, in reality it is the Board of Directors who exercise great control. Board of directors only take decisions regarding day to day operations and routine affairs of the company. With control comes risks of misuse of that power. So to prevent directors from using the funds of the company simply at their will, Section 185 of Companies Act, 2013\u00a0 was introduced to provide rules and regulations for <a href=\"https:\/\/legalwindow.in\/can-a-company-give-loan-to-its-directors-read-to-find-out\/\" target=\"_blank\" rel=\"noopener\">Loans to Directors<\/a> or related parties of directors by a company. In this article we will discuss Section 185 of Companies Act,2013\u00a0 in detail.<\/p>\n<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td style=\"border: 1px solid #555;\"><strong>Table of Contents<\/strong><\/p>\n<ul>\n<li><a href=\"#section-185\">Section 185 of Companies Act, 2013 : Loan to Directors<\/a><\/li>\n<li><a href=\"#loan\">Who cannot be given the loan : Section-185(1)<\/a><\/li>\n<li><a href=\"#conditions\">Who can be given the loan subject to conditions : Section-185(2)<\/a><\/li>\n<li><a href=\"#cases\">Cases where 185(1) &amp; (2) need not be followed : Section-185(3)<\/a><\/li>\n<li><a href=\"#penalties\">Penalties for not following provisions Section : 185(4)<\/a><\/li>\n<li><a href=\"#brief\">A Brief Sum up<\/a><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 id=\"section-185\"><strong>Section<\/strong> <strong>185 of Companies Act, 2013<\/strong><strong> : <\/strong><strong>Loan to Directors<\/strong><\/h2>\n<p>Section-185 of Companies Act, 2013 lays down the provisions for giving loans to the directors, security or guarantee to loans taken by directors. The section tells mainly the situations in which loans cannot be given and conditions under which loans can be given but subject to certain conditions. It also states that in which conditions concurrence of shareholders is mandatory by way of a resolution. The section contains 4 subsections that have specific provisions. We will discuss all these one by one.<\/p>\n<h2 id=\"loan\"><strong>Who cannot be given the loan : Section-185(1)<\/strong><\/h2>\n<p>According to this section a company is not allowed to provide any type of loan (not even a book debt), security and guarantee to any of the following persons-<\/p>\n<ul>\n<li>Any director of the company or its holding company.<\/li>\n<li>Any relative or partner of any of the above director.<\/li>\n<li>Any firm in which the director or relative is a partner.<\/li>\n<\/ul>\n<p>So, it is prohibited by law to give any loan. Guarantee, security to these persons mentioned above. Well it\u2019s not that simple; law has got other provisions also in store for us. So, let us proceed further.<\/p>\n<h2 id=\"conditions\"><strong>Who can be given the loan subject to conditions : Section-185 (2)<\/strong><\/h2>\n<p>Now, the law was very strict in Section-185 (1) above, but in this subsection it loosened itself a bit and allowed certain transactions but subject to conditions. According to this section company can advance loan (including a book debt), security, guarantee in connection to a loan taken by a person in whom the director of the company is interested.<\/p>\n<p>The main two parts of this provision are \u201cperson in whom director is interested\u201d and \u201cconditions to be satisfied\u201d. So, let us understand these two parts-<\/p>\n<p><strong><em><u>\u201cPerson in whom director is interested\u201d includes-<\/u><\/em><\/strong><\/p>\n<ul>\n<li>A <a href=\"https:\/\/legalwindow.in\/private-limited-company\/\" target=\"_blank\" rel=\"noopener\">private company<\/a> in which such director is a director or member.<\/li>\n<li>Anybody corporate in whose general meeting at least 25% of the voting rights are exercised or controlled by one or more directors together.<\/li>\n<li>Where the managing director, manager or Board of Directors of a body corporate act according to the instructions of Board or any one or more directors of the lending company.<\/li>\n<\/ul>\n<p>In short if the lending company significantly controls operations or voting rights of the company then it will be allowed subject to conditions.<\/p>\n<p><strong><em><u>\u201cConditions to be satisfied\u201d are-<\/u><\/em><\/strong><\/p>\n<ul>\n<li>Company should pass a special resolution in a general meeting. The explanatory statement to the notice should include full details about such proposed loan, guarantee or security and the purpose for which it is supposed to be utilised.<\/li>\n<li>The borrowing company can use it only for its principal business activities.<\/li>\n<\/ul>\n<h2 id=\"cases\"><strong>Cases where 185(1) &amp; (2) need not be followed : Section-185 (3)<\/strong><\/h2>\n<p>This section provides about the cases where the provisions of the subsections discussed above will not be applicable. This section lays down the rules where loan, security, guarantee can be given if some conditions are satisfied.<\/p>\n<div class=\"c-tablei-wraper\">\n<table style=\"width: 100%; overflow-x: auto;\">\n<tbody>\n<tr>\n<td style=\"border: 1px solid #555;\"><strong>Given by<\/strong><\/td>\n<td style=\"border: 1px solid #555;\"><strong>Given to\/In respect of<\/strong><\/td>\n<td style=\"border: 1px solid #555;\"><strong>Conditions<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\">Company<\/td>\n<td style=\"border: 1px solid #555;\">Managing or Whole Time Director<\/td>\n<td style=\"border: 1px solid #555;\">\u00b7 Such facility is available to all the employees of the company.<\/p>\n<p>\u00b7 Such scheme should be approved by members by way of a special resolution.<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\">Company which provides loans, guarantees, securities in ordinary course of business<\/td>\n<td style=\"border: 1px solid #555;\">Can be provided in respect of specified loans<\/td>\n<td style=\"border: 1px solid #555;\">\u00b7 The interest charged on the loan should not be less than rate of the yield on a 1 year, 3 year, 5 year or ten year Government Security.<\/p>\n<p>\u00b7 The term closest to the tenure of loan can be taken for comparison.<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\">\u00a0Loan\/Guarantee\/Security given by Holding Company for a loan given by itself<\/td>\n<td style=\"border: 1px solid #555;\">Wholly Owned Subsidiary Company<\/td>\n<td style=\"border: 1px solid #555;\">\u00b7 Loan to be used only in respect of principal business activities by subsidiary<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\">Guarantee\/Security given by Holding Company for a loan given by Bank or a Financial Institution<\/td>\n<td style=\"border: 1px solid #555;\">Wholly Owned Subsidiary Company<\/td>\n<td style=\"border: 1px solid #555;\">\u00b7 Loan to be used only in respect of principal business activities by subsidiary<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>Now, last part of the section is what happens if the provisions of the section are not followed-<\/p>\n<h2 id=\"penalties\"><strong>Penalties for not following provisions : Section-185 (4)<\/strong><\/h2>\n<p>As we see the law has laid down detailed provisions as to what a company should do and not do. However, if a company still fails to abide by the provisions of Section 185 of Companies Act, 2013 and contravenes any of the provisions then it will subject to penalties.<\/p>\n<div class=\"c-tablei-wraper\">\n<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td style=\"border: 1px solid #555;\"><strong>Penalty will be levied on<\/strong><\/td>\n<td style=\"border: 1px solid #555;\"><strong>Minimum<\/strong><\/td>\n<td style=\"border: 1px solid #555;\"><strong>Maximum<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\">Company<\/td>\n<td style=\"border: 1px solid #555;\">Fine of Rs.5 lakhs<\/td>\n<td style=\"border: 1px solid #555;\">Fine of Rs.25 lakhs<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\">Every Officer in default<\/td>\n<td style=\"border: 1px solid #555;\">Fine of Rs.5 lakhs or Imprisonment up to 6 months<\/td>\n<td style=\"border: 1px solid #555;\">Fine of Rs.25 lakhs or Imprisonment up to 6 months<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\">Borrower<\/td>\n<td style=\"border: 1px solid #555;\">Fine of Rs.5 lakhs or 6 months imprisonment \/ Both<\/td>\n<td style=\"border: 1px solid #555;\">Fine of Rs.25 lakhs or 6 months imprisonment\/Both<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<h2><a href=\"https:\/\/legalwindow.in\/appointment-of-director\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-104235 size-full\" src=\"https:\/\/legalwindow.in\/wp-content\/uploads\/qwer.jpg\" alt=\"Appointment of director in Jaipur\" width=\"1000\" height=\"200\" srcset=\"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/qwer.jpg 1000w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/qwer-600x120.jpg 600w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/qwer-300x60.jpg 300w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/qwer-768x154.jpg 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/a><\/h2>\n<h2 id=\"brief\"><strong>A Brief Sum up<\/strong><\/h2>\n<p>Looking at provisions of Section-185 of <a href=\"https:\/\/en.wikipedia.org\/wiki\/Companies_Act_2013\" target=\"_blank\" rel=\"noopener\">Companies Act, 2013<\/a>, we can understand intention of the law. The intention of the law is to provide safety to the shareholders\u2019 rights. In most of the permitted cases resolution from members is compulsory. Also law has taken care that business should not be hindered because of very stringent provisions. That is the reason loan to subsidiaries is permitted. If a company wants to provide loans as a facility to its employees, as a uniform policy than that is also permitted. We can see that law takes care of interests of all parties involved. Similarly, companies should also abide by provisions of law and avoid unnecessary penalty and litigations.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It is said that shareholders are owners of the company. However, in reality it is the Board of Directors who exercise great control. Board of directors only take&hellip;<\/p>\n","protected":false},"author":5,"featured_media":104233,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26],"tags":[],"class_list":["post-104232","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-compliance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Loan to Directors under Section 185 of Companies Act, 2013<\/title>\n<meta name=\"description\" content=\"Latest Guide about Loan to Directors under Section 185 of Companies Act, 2013 , Cases where 185(1) &amp; (2) need not be followed, Penalties, etc.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalwindow.in\/blog\/loan-to-directors-under-section-185-of-companies-act-2013\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Loan to Directors under Section 185 of Companies Act, 2013\" \/>\n<meta property=\"og:description\" content=\"Latest Guide about Loan to Directors under Section 185 of Companies Act, 2013 , Cases where 185(1) &amp; (2) need not be followed, Penalties, etc.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.legalwindow.in\/blog\/loan-to-directors-under-section-185-of-companies-act-2013\/\" \/>\n<meta property=\"og:site_name\" content=\"Legal Window\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/legalwindow.in\/\" \/>\n<meta property=\"article:published_time\" content=\"2021-09-11T12:05:35+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-04-25T08:55:55+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Loan-to-Directors-under-Section-185-of-Companies-Act-2013.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"CS Urvashi Jain (M.COM, LLB, ACS)\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"CS Urvashi Jain (M.COM, LLB, ACS)\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/loan-to-directors-under-section-185-of-companies-act-2013\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/loan-to-directors-under-section-185-of-companies-act-2013\\\/\"},\"author\":{\"name\":\"CS Urvashi Jain (M.COM, LLB, ACS)\",\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/#\\\/schema\\\/person\\\/0d15d443f6478b86969f96816ea59630\"},\"headline\":\"Loan to Directors under Section 185 of Companies Act, 2013\",\"datePublished\":\"2021-09-11T12:05:35+00:00\",\"dateModified\":\"2022-04-25T08:55:55+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/loan-to-directors-under-section-185-of-companies-act-2013\\\/\"},\"wordCount\":1033,\"publisher\":{\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/loan-to-directors-under-section-185-of-companies-act-2013\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/wp-content\\\/uploads\\\/Loan-to-Directors-under-Section-185-of-Companies-Act-2013-1.png\",\"articleSection\":[\"Compliance\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/loan-to-directors-under-section-185-of-companies-act-2013\\\/\",\"url\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/loan-to-directors-under-section-185-of-companies-act-2013\\\/\",\"name\":\"Loan to Directors under Section 185 of Companies Act, 2013\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/loan-to-directors-under-section-185-of-companies-act-2013\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/loan-to-directors-under-section-185-of-companies-act-2013\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/wp-content\\\/uploads\\\/Loan-to-Directors-under-Section-185-of-Companies-Act-2013-1.png\",\"datePublished\":\"2021-09-11T12:05:35+00:00\",\"dateModified\":\"2022-04-25T08:55:55+00:00\",\"description\":\"Latest Guide about Loan to Directors under Section 185 of Companies Act, 2013 , Cases where 185(1) & (2) need not be followed, Penalties, etc.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/loan-to-directors-under-section-185-of-companies-act-2013\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/loan-to-directors-under-section-185-of-companies-act-2013\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/loan-to-directors-under-section-185-of-companies-act-2013\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/wp-content\\\/uploads\\\/Loan-to-Directors-under-Section-185-of-Companies-Act-2013-1.png\",\"contentUrl\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/wp-content\\\/uploads\\\/Loan-to-Directors-under-Section-185-of-Companies-Act-2013-1.png\",\"width\":800,\"height\":800},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/loan-to-directors-under-section-185-of-companies-act-2013\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Loan to Directors under Section 185 of Companies Act, 2013\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/\",\"name\":\"Legal Window\",\"description\":\"Legal Solution Provider\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/#organization\",\"name\":\"LegalWindow\",\"url\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/legalwindow.in\\\/blog\\\/wp-content\\\/uploads\\\/LW-Logo-2.png\",\"contentUrl\":\"https:\\\/\\\/legalwindow.in\\\/blog\\\/wp-content\\\/uploads\\\/LW-Logo-2.png\",\"width\":1245,\"height\":357,\"caption\":\"LegalWindow\"},\"image\":{\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/legalwindow.in\\\/\",\"https:\\\/\\\/www.instagram.com\\\/legalwindow.in\\\/\",\"https:\\\/\\\/www.linkedin.com\\\/company\\\/legal-window\\\/\",\"https:\\\/\\\/in.pinterest.com\\\/legalwindow\\\/\",\"https:\\\/\\\/www.youtube.com\\\/channel\\\/UCFtHKxaXtK4WjOe9UytbX9A\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/#\\\/schema\\\/person\\\/0d15d443f6478b86969f96816ea59630\",\"name\":\"CS Urvashi Jain (M.COM, LLB, ACS)\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/9688428c3b5a0b2f2c22195d91411315eba4822fbe2090ed08ee91103ece9678?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/9688428c3b5a0b2f2c22195d91411315eba4822fbe2090ed08ee91103ece9678?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/9688428c3b5a0b2f2c22195d91411315eba4822fbe2090ed08ee91103ece9678?s=96&d=mm&r=g\",\"caption\":\"CS Urvashi Jain (M.COM, LLB, ACS)\"},\"description\":\"CS Urvashi Jain is an associate member of the Institute of Company Secretaries of India. Her expertise, inter-alia, is in regulatory approvals, licenses, registrations for any organization set up in India. She posse\u2019s good exposure to compliance management system, legal due diligence, drafting and vetting of various legal agreements. She has good command in drafting manuals, blogs, guides, interpretations and providing opinions on the different core areas of companies act, intellectual properties and taxation.\",\"sameAs\":[\"https:\\\/\\\/legalwindow.in\"],\"url\":\"https:\\\/\\\/www.legalwindow.in\\\/blog\\\/author\\\/csurvashijain\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Loan to Directors under Section 185 of Companies Act, 2013","description":"Latest Guide about Loan to Directors under Section 185 of Companies Act, 2013 , Cases where 185(1) & (2) need not be followed, Penalties, etc.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.legalwindow.in\/blog\/loan-to-directors-under-section-185-of-companies-act-2013\/","og_locale":"en_US","og_type":"article","og_title":"Loan to Directors under Section 185 of Companies Act, 2013","og_description":"Latest Guide about Loan to Directors under Section 185 of Companies Act, 2013 , Cases where 185(1) & (2) need not be followed, Penalties, etc.","og_url":"https:\/\/www.legalwindow.in\/blog\/loan-to-directors-under-section-185-of-companies-act-2013\/","og_site_name":"Legal Window","article_publisher":"https:\/\/www.facebook.com\/legalwindow.in\/","article_published_time":"2021-09-11T12:05:35+00:00","article_modified_time":"2022-04-25T08:55:55+00:00","og_image":[{"width":1200,"height":630,"url":"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Loan-to-Directors-under-Section-185-of-Companies-Act-2013.png","type":"image\/png"}],"author":"CS Urvashi Jain (M.COM, LLB, ACS)","twitter_card":"summary_large_image","twitter_misc":{"Written by":"CS Urvashi Jain (M.COM, LLB, ACS)","Est. reading time":"6 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.legalwindow.in\/blog\/loan-to-directors-under-section-185-of-companies-act-2013\/#article","isPartOf":{"@id":"https:\/\/www.legalwindow.in\/blog\/loan-to-directors-under-section-185-of-companies-act-2013\/"},"author":{"name":"CS Urvashi Jain (M.COM, LLB, ACS)","@id":"https:\/\/www.legalwindow.in\/blog\/#\/schema\/person\/0d15d443f6478b86969f96816ea59630"},"headline":"Loan to Directors under Section 185 of Companies Act, 2013","datePublished":"2021-09-11T12:05:35+00:00","dateModified":"2022-04-25T08:55:55+00:00","mainEntityOfPage":{"@id":"https:\/\/www.legalwindow.in\/blog\/loan-to-directors-under-section-185-of-companies-act-2013\/"},"wordCount":1033,"publisher":{"@id":"https:\/\/www.legalwindow.in\/blog\/#organization"},"image":{"@id":"https:\/\/www.legalwindow.in\/blog\/loan-to-directors-under-section-185-of-companies-act-2013\/#primaryimage"},"thumbnailUrl":"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Loan-to-Directors-under-Section-185-of-Companies-Act-2013-1.png","articleSection":["Compliance"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.legalwindow.in\/blog\/loan-to-directors-under-section-185-of-companies-act-2013\/","url":"https:\/\/www.legalwindow.in\/blog\/loan-to-directors-under-section-185-of-companies-act-2013\/","name":"Loan to Directors under Section 185 of Companies Act, 2013","isPartOf":{"@id":"https:\/\/www.legalwindow.in\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.legalwindow.in\/blog\/loan-to-directors-under-section-185-of-companies-act-2013\/#primaryimage"},"image":{"@id":"https:\/\/www.legalwindow.in\/blog\/loan-to-directors-under-section-185-of-companies-act-2013\/#primaryimage"},"thumbnailUrl":"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Loan-to-Directors-under-Section-185-of-Companies-Act-2013-1.png","datePublished":"2021-09-11T12:05:35+00:00","dateModified":"2022-04-25T08:55:55+00:00","description":"Latest Guide about Loan to Directors under Section 185 of Companies Act, 2013 , Cases where 185(1) & (2) need not be followed, Penalties, etc.","breadcrumb":{"@id":"https:\/\/www.legalwindow.in\/blog\/loan-to-directors-under-section-185-of-companies-act-2013\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.legalwindow.in\/blog\/loan-to-directors-under-section-185-of-companies-act-2013\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.legalwindow.in\/blog\/loan-to-directors-under-section-185-of-companies-act-2013\/#primaryimage","url":"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Loan-to-Directors-under-Section-185-of-Companies-Act-2013-1.png","contentUrl":"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Loan-to-Directors-under-Section-185-of-Companies-Act-2013-1.png","width":800,"height":800},{"@type":"BreadcrumbList","@id":"https:\/\/www.legalwindow.in\/blog\/loan-to-directors-under-section-185-of-companies-act-2013\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.legalwindow.in\/blog\/"},{"@type":"ListItem","position":2,"name":"Loan to Directors under Section 185 of Companies Act, 2013"}]},{"@type":"WebSite","@id":"https:\/\/www.legalwindow.in\/blog\/#website","url":"https:\/\/www.legalwindow.in\/blog\/","name":"Legal Window","description":"Legal Solution Provider","publisher":{"@id":"https:\/\/www.legalwindow.in\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.legalwindow.in\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.legalwindow.in\/blog\/#organization","name":"LegalWindow","url":"https:\/\/www.legalwindow.in\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.legalwindow.in\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/legalwindow.in\/blog\/wp-content\/uploads\/LW-Logo-2.png","contentUrl":"https:\/\/legalwindow.in\/blog\/wp-content\/uploads\/LW-Logo-2.png","width":1245,"height":357,"caption":"LegalWindow"},"image":{"@id":"https:\/\/www.legalwindow.in\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/legalwindow.in\/","https:\/\/www.instagram.com\/legalwindow.in\/","https:\/\/www.linkedin.com\/company\/legal-window\/","https:\/\/in.pinterest.com\/legalwindow\/","https:\/\/www.youtube.com\/channel\/UCFtHKxaXtK4WjOe9UytbX9A"]},{"@type":"Person","@id":"https:\/\/www.legalwindow.in\/blog\/#\/schema\/person\/0d15d443f6478b86969f96816ea59630","name":"CS Urvashi Jain (M.COM, LLB, ACS)","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/9688428c3b5a0b2f2c22195d91411315eba4822fbe2090ed08ee91103ece9678?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/9688428c3b5a0b2f2c22195d91411315eba4822fbe2090ed08ee91103ece9678?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/9688428c3b5a0b2f2c22195d91411315eba4822fbe2090ed08ee91103ece9678?s=96&d=mm&r=g","caption":"CS Urvashi Jain (M.COM, LLB, ACS)"},"description":"CS Urvashi Jain is an associate member of the Institute of Company Secretaries of India. Her expertise, inter-alia, is in regulatory approvals, licenses, registrations for any organization set up in India. She posse\u2019s good exposure to compliance management system, legal due diligence, drafting and vetting of various legal agreements. She has good command in drafting manuals, blogs, guides, interpretations and providing opinions on the different core areas of companies act, intellectual properties and taxation.","sameAs":["https:\/\/legalwindow.in"],"url":"https:\/\/www.legalwindow.in\/blog\/author\/csurvashijain\/"}]}},"_links":{"self":[{"href":"https:\/\/www.legalwindow.in\/blog\/wp-json\/wp\/v2\/posts\/104232","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.legalwindow.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.legalwindow.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.legalwindow.in\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.legalwindow.in\/blog\/wp-json\/wp\/v2\/comments?post=104232"}],"version-history":[{"count":8,"href":"https:\/\/www.legalwindow.in\/blog\/wp-json\/wp\/v2\/posts\/104232\/revisions"}],"predecessor-version":[{"id":107594,"href":"https:\/\/www.legalwindow.in\/blog\/wp-json\/wp\/v2\/posts\/104232\/revisions\/107594"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.legalwindow.in\/blog\/wp-json\/wp\/v2\/media\/104233"}],"wp:attachment":[{"href":"https:\/\/www.legalwindow.in\/blog\/wp-json\/wp\/v2\/media?parent=104232"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.legalwindow.in\/blog\/wp-json\/wp\/v2\/categories?post=104232"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.legalwindow.in\/blog\/wp-json\/wp\/v2\/tags?post=104232"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}