LOAN TO DIRECTOR

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CA. abhinav kumar (Querist)
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01 September 2009 what are the consequences , if a public limited company make loan to director which is refundable after some period of time.
(Note :- without the approval of Central Government.)

Ankur Garg

Ankur Garg (Expert)
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01 September 2009 Vacation of office of Director under section 283(1)(h) fro the violation of section 295.

Ankur Garg

Ankur Garg (Expert)
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01 September 2009 Also note section 295 does not make any difference between loan made is refundable or non-refundable. In fact the loan by very nature is refundable.

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CA. abhinav kumar

CA. abhinav kumar (Querist)
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01 September 2009 what if apply for approval of C.G later on ?

Ankur Garg

Ankur Garg (Expert)
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01 September 2009 You have to file application for compounding the offence under section 621A along with application to CG.

CA. abhinav kumar

CA. abhinav kumar (Querist)
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01 September 2009 can u please explain the process in details how to make application for compounding an offence ?