Unsecured loan from shareholder

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ARTHI (Querist)
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20 September 2015 Dear Friends / Experts,

Please guide me on the following, IF POSSIBLE:

Query

A Private Limited Company had taken Unsecured Loan from its Shareholder. Whether such Shareholder’s Loan shall be treated as a Related Party’s Loan or it shall be considered as Loan from Others?

Your reply, please..............

Thanks in advance for possible replies from all concerned.

Pratik Shah

Pratik Shah (Expert)
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21 September 2015 There should not be a question of 'Loan from related party' or 'loan from others'. Section 188 does not apply here.

However, you need to comply with Section 73, since the company has taken loan from Shareholders. Earlier, loan from shareholders was not allowed. But with effect from 05th June, 2015, it is allowed in Private limited company subject certain conditions.

hence, please refer notification dated 05th June, 2015 (Section 73)