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Can a private company take loan from another private company as per provision of Companies Act 2013?
Is there any requirement for obtaining prior approval before taking a loan from another private company?
For taking a loan from another private company, prior approval of the Board of Directors is required. In addition, a company is also required to pass a special resolution, in case the loan amount exceeds the prescribed limit, i.e., 60% of paid-up share capital, free reserves and securities premium account or 100% of free reserves and securities premium account, whichever is higher.