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Wednesday, 11 March 2015

MCA CLARIFICATION ON LOANS TO EMPLOYEES

MCA has clarified that loans and/or advances made by the companies to their employees, other than the managing or whole time directors (which is governed by section 185) are not governed by the requirements of section 186 of the Companies Act, 2013. This clarification will, however, be applicable if such loans/advances to employees are in accordance with the conditions of service applicable to employees and are also in accordance with the remuneration policy, in cases where such policy is required to be formulated.

http://www.mca.gov.in/Ministry/pdf/Circular_04_10032015.pdf

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