Acceptence of deposits from director's relative/friend

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 March 2012 Can a private limited company having a paid up capital of Rs.1,520,000 can accept a loan from Director relative/friends, if at all it is taken can they pay the interest.

Please do clarify !

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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17 March 2012 A private company can accept loan from a person who, at the time of the receipt
of the amount, was a director, relative of
director or member. But can't accept from friend's of directors and or his/her relatives.
However, the 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 /her by borrowing or accepting from others.

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Charu Srivastava

Charu Srivastava (Expert)
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17 March 2012 Agree with the expert..

A private Company can accept the Deposit only from the
1) Members
2). Directors
3)Relative of Directors

They have to furnish the declaration that money is their own money and not the borrowed one.

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Querist : Anonymous

Querist : Anonymous (Querist)

17 March 2012 Thanks ! my doubt is cleared.