09 October 2014
Our client company (PVT) took an unsecured loan from director cum shareholder in February 2014 of Rs.250000. what is the legal compliance under companies act.
09 October 2014
Loan from Director will not be treated as deposit under Companies Act 2013. However Loan from shareholder will be treated as deposit and you have to comply the provisions of Deposits.
In your case director is also a shareholder, so loan from him will be treated as deposit under companies act 2013 and should be avoided. This is my personal opinion.
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