Loans, Guarantees, Security and Investments, Section 186
The company wants to lend Rs 8 crore to a group entity, guarantee a subsidiary's term loan, or park surplus in another company's shares, this is the section that fixes the ceiling, the resolution and the register.
- 6 pages
- 46
- Word and PDF
- 12 September 2026
The 3 formats inside
- 1Board resolution, inter-corporate loan or investment within the section 186 limits.186(5), s.179(3)(e) and (f)On its own₹149
- 2Special resolution and explanatory statement, to exceed the section 186 limitss.186(3), s.102On its own₹149
- 3Register of loans, guarantees, security and acquisitions, layouts.186(9), Rule 12, Form MBP-2On its own₹149
Read the opening
The first part of “Board resolution, inter-corporate loan or investment within the section 186 limit”, as it downloads. Blanks are highlighted.
Certified true copy of the resolution passed at the meeting of the Board of Directors of [ABC Private Limited] held on [Date of the board meeting] at [Time of the board meeting] at the registered office of the Company
LOAN TO [XYZ LIMITED] / INVESTMENT IN THE SECURITIES OF [XYZ LIMITED]
The Chairman placed before the Board a proposal to [grant a loan of Rs ____ to / give a corporate guarantee of Rs ____ in respect of the credit facilities availed by / acquire ____ equity shares of Rs ____ each of] [XYZ Limited]. He placed before the Board a computation of the limits specified in Section 186(2) of the Companies Act, 2013 based on the audited financial statements of the Company as at [31.03.20__], from which it appeared that the aggregate of the loans given, guarantees given, securities provided and investments made by the Company, together with the proposed transaction, amounts to [Rs ____] and is within the limit of [Section 186(2) limit applicable (Rs)], being the higher of sixty per cent of the paid-up share capital, free reserves and securities premium account and one hundred per cent of the free reserves and securities premium account. He further placed before the Board a print of the prevailing yield of the Government security closest to the tenor of the proposed loan as on [Date of the Government security yield used for comparison].