Loans By Company | Online Chartered

Online Chartered13 Jan, 2023Business

Sections 185 and 186 of the companies act 2013 lays down the provisions on how the company can utilize its funds to provide loans. The purpose of introducing these provisions is to safeguard the interest of stakeholders. Since there is huge money of from the public at large involved in the company, therefore it becomes necessary for regulating authorities to introduce such sections to safeguard the interest of all those investors who have invested their funds in the company. Such investors include banks, financial institutions, governments and people at large (shareholders, debenture holders or bondholders).