Free tool · Sections 186, 180 and 185
Can the company lend, invest or borrow this much?
Check the Section 186 limit for loans, guarantees and investments, the Section 180(1)(c) borrowing limit, and whether a loan touches Section 185. Know which resolution you need before you sign.
1. The company
As per the latest audited balance sheet; excludes revaluation reserve and unrealised gains.
2. Proposed transaction
Aggregate already given or made, under Section 186.
Exclude temporary loans from bankers in the ordinary course (repayable on demand or within 6 months).
3. Private company exemption from Section 185 (answer for loans to directors or interested entities)
Approximate figures for guidance only. Actual fees, dates and penalties may vary with the date of filing, later amendments, MCA circulars and the facts of each case; please exercise due diligence before acting.
Based on Sections 179, 180, 185 and 186 of the Companies Act, 2013, the Companies (Meetings of Board and its Powers) Rules, 2014 and the exemptions for private companies notified on 5 June 2015. Section 186 does not apply to banking, insurance and housing finance companies and NBFCs lending in the ordinary course, or to companies providing infrastructural facilities, for the relevant transactions. Related party rules under Section 188 and SEBI LODR may also apply. Not legal advice.
CS Madhur Gandhi · Madhur Gandhi & Associates