# The Companies Act, 2013, Section 378ZK: Loan, etc., to Members

- Act: The Companies Act, 2013 (Act 18 of 2013)
- In force from: 2014-04-01
- Ministry: Ministry of Corporate Affairs
- Source URL: https://indiacode.ecourtsindia.com/companies-act/section/378ZK/

## Text

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.]

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