Any private company of which director of lending company is a director or member; Any Body corporate at a general meeting of which not less than 25% or more of the total voting power is exercised or controlled by one or more directors of the lending company; Any Body corporate, the Board of Directors, managing director or manager whereof is accustomed to act in accordance with the directions or instructions of the Board, or of any director or directors, of the lending company. Hence, when loan is to be provided or guarantee/security is to be provided to specified persons u/s 295(1), it needs a prior approval from board resolution. 295. Section 2. Liquidator to summon meeting of creditors in other cases. Any loan provided, guarantee given and security provided by a, Any loan provided, guarantee given and security provided by. A company need not seek approval of Central Government, while providing loan to its MD or WTD under the housing loan scheme. <> The place in Newfoundland where the registered office is situated 3. By any person to any person specified u/s 195(1) OR. Section 295 of Company Law deals with the loan given to DIRECTORS of the company. 2. what all information a company should provide to get approval from government: Note: The above list is not exclusive. delegate the power of approval to any committee of directors, managing director, manager or any other principal of the company. Section 295(4) deals with the penalty section of any such transaction which falls under section 295 and require approval of Central Government. (4) The power to make rules conferred by this section shall include the power to give retrospective effect, from a date not earlier than the date of commencement of this Act, to the rules or any of them and, unless the contrary is permitted (whether expressly or by necessary implication), no retrospective effect shall be given to any rule so as to prejudicially affect the interests of assessees. 298. 294. Note: If the financial statements and notes prepared in compliance with the accounting standards would not give a true and fair view, additional information must be included in the notes to the financial statements under paragraph 295 (3)(c). That means, any loan given, security provided or guarantee given by subsidiary for its holding company, it will not be exempted. Provides Guarantee in connection with any loan made-, Following are the person specified under section 195 (1)-. A. [15th June 1972] PART I PRELIMINARY Short title and commencement 1. Section 295 of Company Law deals with the loan given to DIRECTORS of the company. Now, the loan was already granted, and that person became specified person after the loan was made, so section 295 does not apply to him anymore. Name of Corporation 2. Any transaction falling under section 295, automatically comes under section 292 as well. Liquidator to summon meeting of creditors. Gives guarantee in connection with any loan made-, (i). Hence, if there exists any housing loan scheme in the company, and MD or WTD are provided housing loan under that scheme, such transaction does not require any approval of Central Government. Terms and agreements of such housing loan remain same for the WTD or MD of the company, as they are for any other employee of the company. Loans to directors, etc. Only prior condition is that Government Company should obtain approval for such non-applicability of section 295 from Department of Central Government. Section 295(4) deals with the penalty section of any such transaction which falls under section 295 and require approval of Central Government. In accordance with section 295A(2) of the Corporations Act 2001, I declare that for the financial year ended 30 June 2010, in my opinion: a) the financial records of the Company for the financial year have been properly maintained in accordance with section 286 of the Corporations Act 2001; and Section 295 in The Companies Act, 1956. We know that providing a loan creates Debt, a contractual Debt. Power to stay or restrain certain proceedings against company. Section 295 applies for the situation existing at the time of transaction. Section 295 does not apply to all types of advances. There are outstanding changes not yet made by the legislation.gov.uk editorial team to Corporation Tax Act 2009. Similarly, any security provided or guarantee given by a HOLDING COMPANY for any loan made to its subsidiary. Such transactions can be: There are certain entities, to which section 295 does not apply, i.e.