31 March 2016
Ministry of Corporate affairs vide its notification dated 15.09.2015 has provided that wef 15.09.2015 a private company can accept unsecured loans apart from director also from a relative of Director provided that relative of director 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 loans or deposits from others and the company shall disclose the details of money so accepted in the Board’s report. The relative need not be a shareholder of the company.
Amounts received from shareholders of private limited company are Exempted under Exemption Notification to Private Companies to a condition that such amount shall not exceed 100% of the networth.
31 March 2016
Private Company: Share holders can give loan to the company provided the loan amount soes NOT exceed the NET WORTH of the company. Directors can give the loan to company.
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