(1)No company (hereinafter in this section referred to as "the lending company") shall-(a)make any loan to, or(b)give any guarantee, or provide any security, in connection with a loan made by any other person to, or to any other person by, any body corporate [* * *], [unless the making of such loan, the giving of such guarantee or the provision of such security has been previously authorised by a special resolution of the lending company: [ The words " which is under the same management as the lending company" omitted by Act 31 of 1965, Section 46 (w.e.f. 1.4.1967).][Provided that no special resolution shall be necessary in the case of loans made to other bodies corporate not under the same management as the lending company where the aggregate of such loans does not exceed [such percentage of the aggregate of the subscribed capital of the lending company and its free reserves as may be prescribed]:[Provided further that the aggregate of the loans made to all bodies corporate shall not exceed without the prior approval of the Central Government-(a)[such percentage of the aggregate of the subscribed capital of the lending company and its free reserves as may be prescribed][where all such other bodies corporate are not under the same management as the lending company; [ The words " which is under the same management as the lending company" omitted by Act 31 of 1965, Section 46 (w.e.f. 1.4.1967).](b)[such percentage of the aggregate of the subscribed capital of the lending company and its free reserves as may be prescribed][where all such other bodies corporate are under the same management as the lending company. [ The words " which is under the same management as the lending company" omitted by Act 31 of 1965, Section 46 (w.e.f. 1.4.1967).][ Explanation 1] [ The words " which is under the same management as the lending company" omitted by Act 31 of 1965, Section 46 (w.e.f. 1.4.1967).][.-.If a special resolution has been passed by the lending company authorising the making of loans up to the limit of [the percentage of the aggregate specified in clause (a), or, as the case may be, the percentage of the aggregate specified in clause (b) of the second proviso] [ The words " which is under the same management as the lending company" omitted by Act 31 of 1965, Section 46 (w.e.f. 1.4.1967).],[then, no further special resolution or resolutions shall be deemed to be necessary for the making of any loan or loans within such limit.] [ The words " which is under the same management as the lending company" omitted by Act 31 of 1965, Section 46 (w.e.f. 1.4.1967).][Explanation 2.-If a special resolution has been passed by the lending company authorising the Board of Directors to give any guarantee or provide any security up to a limit specified in the resolution, then, no further special resolution or resolutions shall be deemed to be necessary for giving any guarantee or providing any security within such limit.] [ Inserted by Act 34 of 1966, Section 3 (w.e.f. 1.4.1967).]
