Q. Co can give loan to Director mother's brother

Question

Hi,

can a pvt ltd company give a loan to Directors Mother Brother (Director Mama)??

As i think it is not covered under the term relative.

If yes then limit u/s 186, 

√ 60% of its Paid-up Share Capital + Free reserves + Securities Premium Account;

OR

√ 100% of its Free reserves + Securities Premium Account;

Whichever is more.

is to be keep in mind, or the above limit is only applicable for Relative of Director and Directors

Answer 1

Mama not covered as relative... limits are for all... not just relatives