Section 378ZK
Loan, etc., to Members.
About this Act
An Act to consolidate and amend the law relating to companies.
1[378ZK. Loan, etc., to Members.-- The Board may, subject to the provisions made in articles, provide
financial assistance to the Members of the Producer Company by way of--
(a) credit facility, to any Member, in connection with the business of the Producer Company, for a period not exceeding six months;
(b) loans and advances, against security specified in articles to any Member, repayable within a period exceeding three months but not exceeding seven years from the date of disbursement of such loan or advances:
Provided that any loan or advance to any director or his relative shall be granted only after the approval by the Members in general meeting.]
(a) credit facility, to any Member, in connection with the business of the Producer Company, for a period not exceeding six months;
(b) loans and advances, against security specified in articles to any Member, repayable within a period exceeding three months but not exceeding seven years from the date of disbursement of such loan or advances:
Provided that any loan or advance to any director or his relative shall be granted only after the approval by the Members in general meeting.]
Notes
1. Ins. by Act 29 of 2020, s. 52 (w.e.f. 11-2-2021).