Loans, guarantees, and investments between group companies are heavily regulated under Sections 185, 186, and 187 of the Companies Act. PJRJ advises boards on permissible transactions, documentation, board approvals, and filing requirements — preventing void transactions and director disqualification risks.
Who it's for
- Groups with cash pooling, promoter funding, or subsidiary lending arrangements
- Companies providing corporate guarantees for related entity borrowings
- Businesses making strategic investments in associates or joint ventures
- CFOs restructuring inter-company balances during group clean-up exercises
Deliverables
- Analysis of proposed loan, guarantee, or investment against Section 185/186 limits
- Board resolution drafting and shareholder approval requirements
- Loan agreement and security documentation review with legal counsel
- Form filing — DPT-3, charge registration, and event-based ROC forms
- Ongoing monitoring of aggregate limits and repayment compliance
Our approach
- 1Map existing inter-company exposures and identify non-compliant legacy arrangements
- 2Recommend regularisation or restructuring paths with legal input
- 3Document new transactions contemporaneously with board approvals
- 4Track repayment, interest, and register maintenance
- 5Annual review as part of secretarial compliance retainer
Inter-corporate compliance errors surface during due diligence and can void guarantees when banks call on them. We fix structures before they become crises.
Advisory is delivered from Delhi and Gurgaon for group companies registered across India.
Inter-Corporate Loans & Investments FAQs
What is Inter-Corporate Loans & Investments?
Loans, guarantees, and investments between group companies are heavily regulated under Sections 185, 186, and 187 of the Companies Act. PJRJ advises boards on permissible transactions, documentation, board approvals, and filing requirements — preventing void transactions and director disqualification risks.
Who needs Inter-Corporate Loans & Investments in Delhi NCR?
Groups with cash pooling, promoter funding, or subsidiary lending arrangements Companies providing corporate guarantees for related entity borrowings Businesses making strategic investments in associates or joint ventures
How can PJRJ help with Inter-Corporate Loans & Investments?
Analysis of proposed loan, guarantee, or investment against Section 185/186 limits; Board resolution drafting and shareholder approval requirements; Loan agreement and security documentation review with legal counsel; Form filing — DPT-3, charge registration, and event-based ROC forms. PJRJ delivers from Delhi and Gurgaon with partner-level oversight.
Discuss your inter-corporate loans & investments requirements
Speak directly with a PJRJ specialist — we respond within one business day.