can public co. accept loan

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Querist : Anonymous (Querist)
24 July 2010 can public co.(unlisted) accept loan from director or director relatives.if yes, give me cases and detail of sections or rule?

24 July 2010 Unlisted Public Company can except loan only from Body Corporate which includes Company and from the Directors.[refer Companies (Acceptance of Deposits) Rules, 1975, Rule 2(b)(iv) & (iX)]

Link of rules :http://www.mca.gov.in/Ministry/actsbills/rules/CAoDR1975.pdf

Loan other than above persons will be treated as Deposits as per Section 58A.



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