(prospectus and allotment of securities) rules, 2014.

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CA Renu Gupta (Querist)
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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?

thanks

SHAKTI JINDAL

SHAKTI JINDAL (Expert)
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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.