Section 581ZK in The Companies (Amendment) Act, 2002
581ZK. Loan, etc., to Members.-
The Board may, subject to the provisions made in articles, provide financial assistance to the Members of the Producer Company by way of-(a)credit facility, to any Member, in connection with the business of the Producer Company, for a period not exceeding six months;(b)loans and advances, against security specified in articles to any Member, repayable within a period exceeding three months but not exceeding seven years from the date of disbursement of such loan or advances: Provided that any loan or advance to any director or his relative shall be granted only after the approval by the Members in general meeting.
