Compliance for loan provided by the directors to company

This query is : Resolved

Sumit (Querist)
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26 April 2013 Are there any restrictions on directors on giving a loan to the company. and If during the year frequently loan is given by the director than which account should be debited?

CA Nayan Ratandhayara

CA Nayan Ratandhayara (Expert)
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26 April 2013 There is no restriction for director giving loan to company. The loan account can be create under unsecured loan from directors.

But make sure that there should not be loan given to director by company, otherwise deemed dividend comes in to picture.

Sumit

Sumit (Querist)
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26 April 2013 Thanks sir I got your point.

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