As per my understanding of Deposit Rules, 1975 still you can claim exemption given under the said rules even if relative of directors is also an employee of the company.
So there is no need to follow the long path of transfer of shares and no need to make him shareholder of such Pvt. Company.
To conclude I would say your private company can accepts loan from such relative of directors even if he is employee of the company. You may go ahead.
27 July 2009
Thanks But i am still confuse bcz we cannot accept loans from employees as it will be termed as deposit and we can accept loan from relative of directors as its exempt so being a employee of company can we take loan from relative of directors??
A loan from employee would be acceptable only when he is also a shareholder i.e. an employee can be shareholder cum investors also
According to deposit Rules, 1975 director or relative of director or member from whom money is received will furnish a declaration in writing to the company so is there any specific format of this declaration or else can you suggest something??
CAclubindia
