Acceptance of loan

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CA Shyam Agarwal (Querist)
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26 March 2016 Respectable Experts

AS per latest amendment 2016 in company`s act, whether pvt ltd companies accept the deposit from 1. director, 2. relative of director 3. member of company 4. any other person.
Please clear that from which a pvt ltd company can accept the loan as per latest amendment 2016

CS Ankur Srivastava

CS Ankur Srivastava (Expert)
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02 April 2016 MCA has issues a circular dated 30-03-2015 and clarified the matter as under:

Stakeholders have sought clarifications as to whether amounts received by private companies from their members, directors or their relatives prior to 1st April, 2014 shall be considered as deposits under the Companies Act, 2013 as such amounts were not treated as 'deposits' under section 58A of the Companies Act, 1956 and rules made thereunder.

2.The matter has been examined in consultation with RBI and it is clarified that such amounts received by private companies prior to 16t April, 2Ol4 shall not be treated as 'deposits' under the Companies Act,2013 and Companies (Acceptance of Deposits) Rules, 2014 subject to the condition that relevant private company shall disclose, in the notes to its financial statement
for the financial year commencing on or after lsi April, 2014 the figure of such amounts and the accounting head in which such amounts have been shown in the financial statement.

3. Any renewal or acceptance of fresh deposits on or aiter 1st April, 2014 shall, however, be in accordance with the provisions of Companies Act, 2013 and rules made thereunder.