Repayment f loan frm director

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 May 2013 a pvt co has tkn loan frm itd director nw lt wnt to repay d same bt it dnt hv enough money cn they repay it in any other manner than money.if s pls clrify me

Ankur Garg

Ankur Garg (Expert)
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02 May 2013 Fresh Equity shares can be issued to concerned director against the loan.

In case of fresh allotment of equity shares a board resolution would be required for allotment.

Filing of form 2 with roc would also be required.

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Querist : Anonymous

Querist : Anonymous (Querist)

02 May 2013 Thanks sir

Other than alloting shares is there any other option available to company

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Ankur Garg

Ankur Garg (Expert)
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02 May 2013 As per my understanding there is no other option which would be considered as a safe and legal one. However you may go for a professional consultancy in this regard.

Thanks

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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13 June 2013 You take the loan from Bank but this fact for repayment must be brought in the knowledge of the bank. If there are no funds which means that your company is sustaining losses. Banker will also not entertain your loan application so the only option has already been suggested by the expert.