Borrowing from other company


This query is : Resolved 

(Querist)
24 November 2013 Sir,

One of my clint is private limited compnay. its wants to take unsecured loan from other private company. can it take the loan. what happen when some directors of other company are same in our company.

24 November 2013 Hi Rajni,

Answer to your first Q:

In normal situation, this will be treated as an inter corporate loan and section 372 A of the CA 1956 needs to be taken care. Since 372 A is not applicable to a private limited Company you can very well accept the same.

On your second Q, New Companies Act, 2013 does not allows loan to directors and their interested concerns by a Company.. and thus in your case it is not possible...

Sooraj@9940492568







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