Loan, etc., to Members

Section 378ZK of the Companies Act, 2013 deals with loan, etc., to Members. [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 mon The Act came into force on 01 Apr 2014.

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.]

Section 378ZK, The Companies Act, 2013 (Act 18 of 2013).