Loan

This query is : Resolved 

24 February 2017 can a private company give a loan to an individual who is neither a director nor a shareholder nor a promoter...the individual is not related to the company in any manner....can co. give him the loan...company is not a NBFC

24 February 2017 this query is urgent...

24 February 2017

Yes loan can be given but make sure that No company shall directly or indirectly give any loan to any other person or body corporate exceeding 60% of its paid up share capital, free reserves and share premium or 100% of its free reserves and securities premium whichever is more. If the company proposes to advance any such loan exceeding its limits then prior approval by means of a special resolution passed at a general meeting shall be required. Prior approval of the public financial institution shall also be required if there is any default in repayment of instalment or interest on the term loan.




You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries