Loan taken by pvt. Ltd. Company

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Querist : Anonymous

Querist : Anonymous (Querist)

28 May 2010 Can a Company loan taken from other then it's members / directors. if possible what is requirement.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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28 May 2010 Any amount can be received as loan from a person who at the time of the receipt of the amount was a Director of the company or any amount received from its shareholders, by a private company is allowed, Provided that the Director or shareholder, as the case may be, from whom the money is received furnishes to the company at the time of giving the money, a declaration in writing to the effect that the amount is not being given out of funds acquired by him by borrowing or accepting from others.

Loans from corporates can be taken also.