Section 185 – Loans to Directors Section 185 is designed to prevent companies from giving undue financial benefits to their directors or persons closely connected to them. It promotes corporate governance and avoids conflicts of interest. Key Provisions (After Amendments) 1. Absolute Prohibition A company cannot directly or indirectly : Give loans, Provide guarantees, or Provide security for any loan Any director of the company , Any director of its holding company , Any part