Section 185 Companies Act, 2013
1. The Companies Act, 2013 (“the Act”) received the assent of the President on 29th. August, 2013.
2. Section 1 (3) of the Act provides as under:
“This section shall come into force at once and the remaining provisions of this Act shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act and any reference in any provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.”
3. In pursuance of this sub-section, the Central Government notified the coming into force of 98 sections with effect from 12th. September, 2013.
4. Section 465 of the Act states that “The Companies Act, 1956 shall stand repealed”.
5. Section 465 of the Act has not been notified in the Notification dated 12th. September, 2013 and the Companies Act, 1956 is not therefore repealed as of this date i.e. 18th. November, 2013.
6. The Government of India, Ministry of Corporate Affairs has vide Circular No. 16 / 2013 clarified that with effect from 12.09.2013, the relevant provisions of the companies Act, 1956, which correspond to provisions of 98 sections of the companies Act, 2013 brought into force on 12.09.2013, cease to have effect from that date.
7. Section 185 of the Act is one of the 98 sections notified and is deemed to correspond with section 295 of the Companies Act, 1956 which is therefore by inference deemed to have been repealed.
8. Section 185 (1) of the Act states as under:
Save as otherwise provided in this Act (emphasis supplied), no company shall, directly or indirectly, advance any loan, including any loan represented by a book debt, to any of its directors or to any other person in whom the director is interested or give any guarantee or provide any security in connection with any loan taken by him or such other person:
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9. Section 186
2. Section 1 (3) of the Act provides as under:
“This section shall come into force at once and the remaining provisions of this Act shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act and any reference in any provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.”
3. In pursuance of this sub-section, the Central Government notified the coming into force of 98 sections with effect from 12th. September, 2013.
4. Section 465 of the Act states that “The Companies Act, 1956 shall stand repealed”.
5. Section 465 of the Act has not been notified in the Notification dated 12th. September, 2013 and the Companies Act, 1956 is not therefore repealed as of this date i.e. 18th. November, 2013.
6. The Government of India, Ministry of Corporate Affairs has vide Circular No. 16 / 2013 clarified that with effect from 12.09.2013, the relevant provisions of the companies Act, 1956, which correspond to provisions of 98 sections of the companies Act, 2013 brought into force on 12.09.2013, cease to have effect from that date.
7. Section 185 of the Act is one of the 98 sections notified and is deemed to correspond with section 295 of the Companies Act, 1956 which is therefore by inference deemed to have been repealed.
8. Section 185 (1) of the Act states as under:
Save as otherwise provided in this Act (emphasis supplied), no company shall, directly or indirectly, advance any loan, including any loan represented by a book debt, to any of its directors or to any other person in whom the director is interested or give any guarantee or provide any security in connection with any loan taken by him or such other person:
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9. Section 186