{"id":1405,"date":"2015-03-17T00:00:00","date_gmt":"2015-03-16T18:30:00","guid":{"rendered":""},"modified":"2015-12-29T14:47:47","modified_gmt":"2015-12-29T09:17:47","slug":"clarification-regarding-loans-and-advances-to-employees-under-companies-act-2013","status":"publish","type":"post","link":"https:\/\/taxclick.org\/type\/company-law\/clarification-regarding-loans-and-advances-to-employees-under-companies-act-2013\/","title":{"rendered":"Clarification regarding loans and advances to employees under Companies Act, 2013"},"content":{"rendered":"

General Circular No. 0412015<\/strong><\/p>\n

No. 1\/32\/2013-CL.V
\nGovernment of India
\nMinistry of Corporate Affairs<\/p>\n

5th floor, A’ wing, Shastri Bhavan
\nNew Delhi \u2014 110001<\/p>\n

<\/span>Dated: 10\/03\/2015<\/span><\/span><\/p>\n

To<\/p>\n

All Regional Directors,<\/p>\n

All Registrar of Companies, All Stakeholders.<\/p>\n

Subject : Clarification with regard to
\nsection 185 and 186 of the Companies <\/strong>Act, 2013 \u2014 loans and
\nadvances to employees – reg.<\/strong><\/strong><\/p>\n

Sir,<\/p>\n

This Ministry has received a number of
\nreferences seeking clarification on the applicability of provisions of section 186 of the Companies Act, 2013
\nrelating to grant of loans and
\nadvances by Companies to their employees.<\/p>\n

2.       
\nThe issue has
\nbeen examined and it is hereby clarified <\/strong>that loans
\nand\/or advances made
\nby the companies to their employees, other than the managing or whole time directors (which is governed <\/strong>by section 185) are not governed by the requirements of section 186 of the Companies Act, <\/strong>2013. This clarification <\/strong>will, however, be applicable if such loans\/advances to employees are in
\naccordance with the conditions
\nof service applicable to employees and are also in accordance with the remuneration policy, in cases where such
\npolicy is required to be formulated.<\/p>\n

3.       
\nThis issues with the approval of <\/strong>the <\/strong>Secretary.<\/p>\n

 Yours faithfully,<\/strong><\/p>\n

Sd\/-<\/strong><\/p>\n

(KMS Narayanan  )<\/p>\n

Assistant Director Phone : 011-23387263<\/p>\n

Copy to :<\/p>\n

1.   PSO to Secretary<\/p>\n

2.   PS to JS(M)\/JS(B)\/35(A)\/JS(SP)\/DII(NS)\/Dil(P)<\/p>\n

3.   E-Gov Cell for uploading on the MCA website<\/p>\n

4.  
\nGuard File.<\/p>\n","protected":false},"excerpt":{"rendered":"

General Circular No. 0412015 No. 1\/32\/2013-CL.V Government of India Ministry of Corporate Affairs 5th floor, A’ wing, Shastri Bhavan New Delhi \u2014 110001 Dated: 10\/03\/2015 To All Regional Directors, All Registrar of Companies, All Stakeholders. Subject : Clarification with regard to section 185 and 186 of the Companies Act, 2013 \u2014 loans and advances to … Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6],"tags":[127],"yoast_head":"\nClarification regarding loans and advances to employees under Companies Act, 2013 - All About Finance<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/taxclick.org\/type\/company-law\/clarification-regarding-loans-and-advances-to-employees-under-companies-act-2013\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Clarification regarding loans and advances to employees under Companies Act, 2013 - All About Finance\" \/>\n<meta property=\"og:description\" content=\"General Circular No. 0412015 No. 1\/32\/2013-CL.V Government of India Ministry of Corporate Affairs 5th floor, A’ wing, Shastri Bhavan New Delhi \u2014 110001 Dated: 10\/03\/2015 To All Regional Directors, All Registrar of Companies, All Stakeholders. 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