29 April 2010
An employee was given loan by limited company. Thereafter he is appointed as director & managing director. Is co. require to take approval ? Which other provision would be applicable?
Where a loan was made in the past by the company to a person who was not a director of a company and such loan is still outstanding when such person became a director, no approval of the central govt. shall be required. However, any further advance made after the person becomes a director, will be covered under section 295.
30 April 2010
agreed. that is becasue when he was granted loan then at that time he has not interest in the company so loan will carry ots nature as it is.
CAclubindia
