loan from directors,any person

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Nagamani (Querist)
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30 July 2010 Dear all,

Please tell me whether there is any limit for a private limited company to accept a loan from a director,shareholder/friends

Thanks & Regards
Nagamani

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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30 July 2010 NO.

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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30 July 2010 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. This could be the limit.

Loan from friends should not be taken.

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