Loan

This query is : Resolved

Raaj (Querist)
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06 April 2018 Can an executive director of a private limited company to which he is the executive director give loan to the company?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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06 April 2018 Yes.,since
any amount received from a person who, at the time of receipt of the amount, was
director of the Company, will be out of preview of Deposits.
Condition: The 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.