Legal Question in Business Law in India
A public limited company in India has given loans to related parties at lower than market rates. They have taken shareholder approval for loans to be given. But the rates are prejudicial to the interests of the company and they are also unsecured. What are the remedies and can I attribute a criminal element of diversion of funds??? Thanks
Asked on 1/09/11, 11:53 pm
1 Answer from Attorneys
Yes,
You can initiate legal proceedings against the company under above circumstances.
What is your designation in the company? Are you a stakeholder in the company?
No company can vest with the funds prejudicial to the interest of the interested parties.
Regards
Jeevesh Mehta
Ph: 09811617186
Answered on 1/10/11, 11:03 pm
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