Loan to director

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 December 2013 Hello Experts,
Can u please help me regargind whether a Pvt ltd company can give loan to directors??
what is d procedure and is there any conditions???

Thanks in advance

CS Adnan Shaikh

CS Adnan Shaikh (Expert)
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16 December 2013 As per section 185 of Companies Act, 2013, even a pvt ltd co cannot give loan to directors except conditions mentioned in clause a & b of subsection 1 of section 185.

Regards,
Adnan

Ajay Mishra

Ajay Mishra (Expert)
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16 December 2013 Now Private company come under the preview of section 185 of new Companies Act, 2013 dealing with Loan to director.

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Querist : Anonymous

Querist : Anonymous (Querist)

16 December 2013 i wanna know about companies act 1956??
our is a pvt ltd co and its has given loan to its directors in previous year so want to know its valid or not??

Ajay Mishra

Ajay Mishra (Expert)
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16 December 2013 Yes, you are eligible to give loan under section 292 of the Companies Act, 1956.

Querist : Anonymous

Querist : Anonymous (Querist)

16 December 2013 Thanks but what is the procedure??
is der any resolution required and is it considered as deemed dividend??

Ajay Mishra

Ajay Mishra (Expert)
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17 December 2013 Pass Board Resolution under section 292 of the Companies Act, 1956.