Section 370A – The Companies Act,1956

The Companies Act, 1956

370A. Provisions as to certain loans which could not have been made if sections 369 and 370 were in force

2[370A. Provisions as to certain loans which could not have been made if sections 369 and 370 were in force

Where any loan made, guarantee given or security provided by a company and outstanding at the commencement of the Companies (Amendment) Act, 1960 would not have been made, given or provided if 3[***] section 370 had been in force at the time when such loan was made, guarantee given or security provided, the company shall, within six months from the commencement of that Act, enforce the repayment of the loan made or, as the case may be, revoke the guarantee given or the security provided, notwithstanding any agreement to the contrary:

Provided that the period of six months within which the company is required by this section to enforce the repayment of the loan or to revoke the guarantee or security, may be extended-
(a) 1[***]

(b) in the case of a loan, guarantee or security under section 370, by a special resolution of the company.]

1. Omitted by Act 53 of 2000, sec. 165 (w.e.f. 13-12-2000).

2. Inserted by Act 65 of 1960, sec. 136 (w.e.f. 28-12- 1960).

3. The words “section 369 or” omitted by Act 53 of 2000, sec. 165 (w.e.f. 13th. December, 2000).

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The Companies Act, 1956

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