Loan by pvt company

This query is : Resolved

Report Abuse Follow Query Ask a Query

vivek somani

vivek somani (Querist)
Follow

13 March 2014 can a pvt ltd company give loan to sole prop firm of its director??

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

19 March 2014 Section 185 of the Companies Act, 2013 PROHIBITS loans to a director or any other person in whom the director is interested.

This section is applicable to ALL companies including private companies.

So private company CANNOT give loan to sole proprietor firm of its director.