Cash Advance paid to Directors

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virendra (Querist)
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09 December 2008 sir,

If we have paid Cash Advance around 50 Thousand to one of our Director's any resolution to be passed?

pl. breif if complications

S Kedarnath

S Kedarnath (Expert)
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11 December 2008 In case of a public company any advance paid to a director is subject to the provisions of Section 295 of the Companies Act, 1956. However, in case of a private company this provision is not applicable. Any advance to a director should be through a resolution of a Board, unless it is a travel advance or a salary advance.