18)

K Limited, a subsidiary of Old Limited, decides to give a loan of ` 4,00,000 to the Human Resource Manager, who is not a Key Managerial Personnel of K Limited, drawing salary of ` 30,000 per month, to buy 500 partly paid-up equity Shares of ` 1000 each in K Limited. Examine the validity of company’s decision under the provisions of the Companies Act, 2013.

Answer rating: 100% (QA)

Answer Restrictions on purchase by company or giving of loans by it for purchase of its share As p... View the full answer