26 June 2010
In case of a private limited company loan can be taken only from director & shareholders which can be in foreign currency but not from directors relative.
Section 58A is not applicable if loan is taken from a director in case of any company or from a shareholder in case of a private company out of his own funds (that is not borrowed or accepted from others) including a Company which has become public u/s.43A so long as it retains S. 3(1)(iii) conditions in its Articles. The director / shareholder concerned however has to furnish a declaration in writing to the effect that the amount is not being given out of funds acquired by him by borrowing or accepting from others.
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