MCA vide notification dated 11th October, 2019 amends Rule 11 of Companies (Meetings of Board and its Powers) Rules, 2014 providing for loans and investment by a company under section 186 of the Act.
As per section 186, the company established with the objects of and engaged in the business of financing industrial enterprises were exempted from certain provisions of section 186 i.e. Loan and investment by company.
In the attached Rules which defines the term “business of financing of Companies”, the words “business of financing of Companies” is substituted by the words “business of financing industrial enterprises” to make it consensus with sub section 11 of section 186.
The complete content of notification is attached herewith: