Yes a private Limited company can take loan from the individual if such individual is director or relatve of director or member of the company. Otherwise the same would be treated as deposit under companies act, 1956.
But for that purpose you have to pass a board resolution u/s 292(1)(c) of the companies act, 1956 for the purpose of borrowing otherwise then on debenture.
Further if any director is interested in the transaction then disclosure of interest by that director is necessary u/s 299 only at a board meeting.
10 July 2009
A private limited co should accept loan/deposits from shareholders , directors and corporates, banks etc. Loan from others has lot of restrictions and formalities
10 July 2009
If you accept any loan from an outsider other than a Shareholder then you are violating Section 58A of the companies Act acceptance of public deposits.
Based on above a private limited company should not take loan from individual.
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