Acceptance of loan from huf
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
18 August 2013
Can a PVT LTD company accept loan from HUF in which one its director is Karta or Member. If Yes, please provide with relevant information. Thanks in Advance.
18 August 2013
Hi
Yes, you can take.
Deposits from HUF
Acceptance of deposit by a private company from HUF:—
(a) If all members of HUF are also the directors of private company, such private company can accept deposits/unsecured loans from HUF. This case will be covered under rule 2(b)(ix) i.e. such a deposit is an exempted deposit.
(b) If all members of HUF are not the directors of a private company i.e. some of them are the partners and remaining are shareholders, still private company can accept unsecured loan/deposit from HUF. This case will be covered under rule 2(b)(ix) i.e. such a deposit is an exempted deposit.
(c) If there are some members of HUF who are not the shareholders of a private company, still private company can accept deposits from HUF. This case will not be covered under rule 2(b)(ix).
Yes, you can take.
Deposits from HUF
Acceptance of deposit by a private company from HUF:—
(a) If all members of HUF are also the directors of private company, such private company can accept deposits/unsecured loans from HUF. This case will be covered under rule 2(b)(ix) i.e. such a deposit is an exempted deposit.
(b) If all members of HUF are not the directors of a private company i.e. some of them are the partners and remaining are shareholders, still private company can accept unsecured loan/deposit from HUF. This case will be covered under rule 2(b)(ix) i.e. such a deposit is an exempted deposit.
(c) If there are some members of HUF who are not the shareholders of a private company, still private company can accept deposits from HUF. This case will not be covered under rule 2(b)(ix).
19 August 2013
I thought it cannot accept because
2(b)(ix) any amount received by a private company from a person who, at the time
of the receipt of the amount, was a director, relative of director or member
Can HUF be considered as a relative of the director
2(b)(ix) any amount received by a private company from a person who, at the time
of the receipt of the amount, was a director, relative of director or member
Can HUF be considered as a relative of the director
19 August 2013
Dear Rajesh......
A public company or private company taking loan from its director will not be considered as deposit under Rule 2(b)(iX).
So company is free to take loan from directors.
Always HUF will be considered as relative of directors.
A public company or private company taking loan from its director will not be considered as deposit under Rule 2(b)(iX).
So company is free to take loan from directors.
Always HUF will be considered as relative of directors.
20 August 2013
Thank you Ajay.
On the same lines, I had the following understanding, kindly clarify of you think otherwise:
(a) Loan cannot be accepted from HUF of a member because Relative of only directors is covered
(b) Loan cannot be accepted from a firm / AOP where other partners / members are not members/directors/relative of directors in the Company.
Thanks in advance
On the same lines, I had the following understanding, kindly clarify of you think otherwise:
(a) Loan cannot be accepted from HUF of a member because Relative of only directors is covered
(b) Loan cannot be accepted from a firm / AOP where other partners / members are not members/directors/relative of directors in the Company.
Thanks in advance
20 August 2013
Acceptance of deposit by a private company from a partnership firm:—
(a) If all partners of the firm are also the directors of a private company, such private company can accept unsecured loans/deposits from the firm. This case will be covered under rule 2(b)(ix) i.e. such a deposit is an exempted deposit.
(b) If all partners of a firm are not the directors of a private company i.e. some of them are the directors and remaining are the shareholders, still private company can accept deposit from the firm.
(c) If all partners of a firm are not the directors of a private company i.e. some of them are the directors, some of them are shareholders and remaining are relatives of a partners who is a shareholder. This case is not covered under rule 2(b)(ix).
(d) Where some partners are directors in a private company and remaining partners are not their relatives, private company cannot accept deposits from such firm.
Acceptance of deposit by a private company from a partnership firm:—
(a) If all partners of the firm are also the directors of a private company, such private company can accept unsecured loans/deposits from the firm. This case will be covered under rule 2(b)(ix) i.e. such a deposit is an exempted deposit.
(b) If all partners of a firm are not the directors of a private company i.e. some of them are the directors and remaining are the shareholders, still private company can accept deposit from the firm.
(c) If all partners of a firm are not the directors of a private company i.e. some of them are the directors, some of them are shareholders and remaining are relatives of a partners who is a shareholder. This case is not covered under rule 2(b)(ix).
(d) Where some partners are directors in a private company and remaining partners are not their relatives, private company cannot accept deposits from such firm.
20 August 2013
Rule 2(B) (ix) of the the Companies (Acceptance of Deposits) Rule, 1975 is defind as follow:
“Any amount received by a private company from a person who at the time of the receipt of the amount, was a director, relative of director or member.”
In exercise of the powers conferred by Section 58A read with sub-clauses (a) and (b) of Sub-section (1) of Section 642 of the Companies Act, 1956 (1 of 1956), the Central Government, in consultation with the Reserve Bank of India, hereby makes the following rules further to amend the Companies (Acceptance of Deposits) Rules, 1975, namely:-
1 . Companies (Acceptance of Deposits) Amendment Rules, 2004.-
1.Short Title and Commencement - (1) These rules may be called the Companies (Acceptance of Deposits) Amendment Rules, 2004.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In rule 2 of the Companies (Acceptance of Deposits) Rules, 1975, in clause (b), for sub-clause (ix), the following sub-clause shall be substituted, namely:-
" (ix) any amount received from a person who, at the time of the receipt of the amount, was a director of the company or any amount received from a relative of a director or its member by a private company :
Provided that the director, relative of a director or member, as the case may be, from whom money is received, furnishes to the company at the time of giving the money, a declaration in writing to the effect that the amount is not being given out of funds acquired by him by borrowing or accepting from others".
After this amendments in this rule as on 12/03/2004 the public company can take money from its director because the word private company has been replace in this sub clause by the word “ the Company”.
“Any amount received by a private company from a person who at the time of the receipt of the amount, was a director, relative of director or member.”
In exercise of the powers conferred by Section 58A read with sub-clauses (a) and (b) of Sub-section (1) of Section 642 of the Companies Act, 1956 (1 of 1956), the Central Government, in consultation with the Reserve Bank of India, hereby makes the following rules further to amend the Companies (Acceptance of Deposits) Rules, 1975, namely:-
1 . Companies (Acceptance of Deposits) Amendment Rules, 2004.-
1.Short Title and Commencement - (1) These rules may be called the Companies (Acceptance of Deposits) Amendment Rules, 2004.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In rule 2 of the Companies (Acceptance of Deposits) Rules, 1975, in clause (b), for sub-clause (ix), the following sub-clause shall be substituted, namely:-
" (ix) any amount received from a person who, at the time of the receipt of the amount, was a director of the company or any amount received from a relative of a director or its member by a private company :
Provided that the director, relative of a director or member, as the case may be, from whom money is received, furnishes to the company at the time of giving the money, a declaration in writing to the effect that the amount is not being given out of funds acquired by him by borrowing or accepting from others".
After this amendments in this rule as on 12/03/2004 the public company can take money from its director because the word private company has been replace in this sub clause by the word “ the Company”.
20 August 2013
My pleasure............
10 September 2013
Dear Ajay.
Need further help from you
In HUF if
- Karta is a shareholder in the Private Company
- but co-parceners in the HUF are not Shareholders in that company,
Can the company accept deposit from the said HUF
Rajesh
Need further help from you
In HUF if
- Karta is a shareholder in the Private Company
- but co-parceners in the HUF are not Shareholders in that company,
Can the company accept deposit from the said HUF
Rajesh
Message likes :
1 times
10 September 2013
Yes, you can take loan from HUF and it will not be treated as deposit.
10 September 2013
Acceptance of deposit by a private company from HUF:—
(a) If all members of HUF are also the directors of private company, such private company can accept deposits/unsecured loans from HUF. This case will be covered under rule 2(b)(ix) i.e. such a deposit is an exempted deposit.
(b) If all members of HUF are not the directors of a private company i.e. some of them are the partners and remaining are shareholders, still private company can accept unsecured loan/deposit from HUF. This case will be covered under rule 2(b)(ix) i.e. such a deposit is an exempted deposit.
(c) If there are some members of HUF who are not the shareholders of a private company, still private company can accept deposits from HUF. This case will not be covered under rule 2(b)(ix).
Acceptance of deposit by a private company from HUF:—
(a) If all members of HUF are also the directors of private company, such private company can accept deposits/unsecured loans from HUF. This case will be covered under rule 2(b)(ix) i.e. such a deposit is an exempted deposit.
(b) If all members of HUF are not the directors of a private company i.e. some of them are the partners and remaining are shareholders, still private company can accept unsecured loan/deposit from HUF. This case will be covered under rule 2(b)(ix) i.e. such a deposit is an exempted deposit.
(c) If there are some members of HUF who are not the shareholders of a private company, still private company can accept deposits from HUF. This case will not be covered under rule 2(b)(ix).
Message likes :
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18 February 2015
Now as per new ammended Companies Act the whole senorita has changed. Now can a pvt. ltd. comp nay accept the loan or deposit from an HUF where in karta of an HUf and all members of an huf are the director and members of the company.
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