A limited company with paid up capital more than 1 crore has given unsecured loan to the wife of the director . what are the necessary legal compliances to be initiated for doing this.
if the Company is a public limited company, the prior approval of Central Government is required for the loan to relative of Director. in your case the loan is already given so now the loan should be repaid to the Company and the Company and the officers in default should go for Compounding.
Thereafter the Company may apply to CG for the loan to Director's wife.
CAclubindia
