goodwill loan

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Querist : Anonymous

Querist : Anonymous (Querist)

18 October 2013
Dear Sir,

Can a company take a goodwill loan from Friends & Relatives

@VaibhavJ

@VaibhavJ (Expert)
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18 October 2013 Hi,

A private limited company can take unsecured loan from its shareholders, directors and their relatives and the same would not be covered under section 58A and other deposit provisions as such transaction is exempt by deposit rules 1975.

But if a private company take unsecured loans from persons other than its shareholders, directors and their relatives the same would be considered as deposit under section 58A read with Companies (Acceptance of Public Deposit) Rules, 1975 and violation of section 3(1)(iii)(d).

Thanks//VaibhavJ

Querist : Anonymous

Querist : Anonymous (Querist)

19 October 2013 Thanks Vaibhavji for your corporation

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@VaibhavJ

@VaibhavJ (Expert)
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19 October 2013 Thanks for acknowledgement.