Section 378ZK Loan, etc., to Members
- Chapter
- XXIA · Producer Companies
- Amendments
- 1
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021378ZK. Loan, etc., to Members.—
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021The Board may, subject to the provisions made in articles, provide financial assistance to the Members of the Producer Company by way of—
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(a) credit facility, to any MemberDefined in section 2(55): member, in relation to a company, means the subscriber to the memorandum entered in the register of members, every other person who agrees in writing to become a member and is entered in the register of members, and every person holding shares whose name is entered as a beneficial owner in depository records., in connection with the business of the Producer Company, for a period not exceeding six months;
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(b) loans and advances, against security specified in articles to any MemberDefined in section 2(55): member, in relation to a company, means the subscriber to the memorandum entered in the register of members, every other person who agrees in writing to become a member and is entered in the register of members, and every person holding shares whose name is entered as a beneficial owner in depository records., repayable within a period exceeding three months but not exceeding seven years from the date of disbursement of such loan or advances:
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021Provided that any loan or advance to any director or his relative shall be granted only after the approval by the Members in general meeting.