Acceptaion of loan from director's proprietary firm
Querist : Anonymous
Mr. A is director in XYZ pvt. Ltd however Mr. A is also running his proprietary firm. Pls clarify weather XYZ pvt. Ltd can accept the loan from Mr. A's proprietary firm. If so? What it's procedure,
Thanks & Regards
Manoj Kushwah
Querist : Anonymous
Pls do clarify the same,
Querist : Anonymous
And just to tell you, Company is required to take Declaration from Director that he is giving the loan to Company from his Owned Funds. That's the only restriction. In this case, Company can not verify whether Director has given it from owned fund or borrowed funds. It is not Company's liability.
Querist : Anonymous
In proprietary firm director has taken
OD limit that means borrowed money he will trf the loan from his
OD account to company's OD account so as OD limit is the bank loan how it may be treated from his fund. Is it batter for director to withdraw his capital from his proprietary concern and then
Provide the loan to company
The thing is, if he withdraws money and then give money to Company and even if he gives declaration that it is from Owned Funds, no one will be able to verify that whether it is owned funds or borrowed funds, but this will surely be considered as Borrowed Funds (As I mentioned, Sole Proprietorship and Directors are one and the same, they can not be considered different).
Conclusion: Based on scenario given by you, Company can not take money from such Sole Proprietorship Firm/Director since the Sole Proprietorship Firm/Director has taken loan from Bank, hence it is considered as Borrowed Funds.
Querist : Anonymous
Also clarify if director has given the declare that it was from his own fund. After that No one really ask him what was the exactly sourses of this fund,
Please be specific with your query. Else no one will be able to help you properly.
Querist : Anonymous
(1) can director take the money from his wife and give the same as loan to company weather the wife's money can be clubbed in husband money as per company act. Or not,
(2) suppose i am director in pvt. Company and want to buy the company's 1 Lakh equity share face value 10 per share total Rs. 10 Lakh but as of now i dont have money to buy company's share hence in this scenario i want the company to allot its 1 Lakh equity share Now and after 5 to 6 month i will pay share money of 10 Lakh to the company. Pls guide me is it possible
Thanks in Advance.............
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