02 April 2014
(I) section 42 read with rule 14 of Companies (Prospectus and Allotment of Securities) Rules, 2014, is this section applies to pvt ltd company?
and if a shareholder is director in pvt ltd co then can company accept loan from him?
09 April 2014
Yes, section 42 is applicable to private companies as well. The pvt company can accept loan from a director provided its source in the hands of director is not out of borrowed funds.
CAclubindia
