Please provide me format of declaration for the exempted deposit which is given by an existing director to the company; and whether this transction will fall under section 299?
10 May 2010
Directors can provide a loan, provided that the There should be a proper agreement for the assistance provided and the same should not adversely affect the companys interest.
Even though it will not come under deposit you can have a declaration stating that the loan procided by the director is not any borrowed fund.
I am attaching you the declaration as required by you.
TO WHOMSOEVER IT MAY CONCERN
I, (Director name) s/o (Fathers name), Director/shareholder of the company M/s (Company name) residing at (Address proof), hereby declare that I have lend the amount of Rs. (Amount of unsecured loan) to (Company name), as unsecured loan and the funds so lent by me is out of my own fund and has not been borrowed from anybody. The loan is interest free.
CAclubindia
