Loan from employeee??

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Querist : Anonymous

Querist : Anonymous (Querist)

04 September 2013 can a pvt limited company accept a loan from its employee?
and upto what amounnt??
what are its provisions

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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04 September 2013 there is no such limit anywhere mentioned.

Querist : Anonymous

Querist : Anonymous (Querist)

04 September 2013 so according to u a pvt. limited co. can accept loan from employee even of rs.100000/-

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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04 September 2013 yes provided resolution is passed and consent of directors obtained.

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Querist : Anonymous

Querist : Anonymous (Querist)

04 September 2013 Ok thanks a lot....

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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04 September 2013 Section 3(1)(iii) defines a private company as one which—

(a) has a minimum paid-up share capital of Rs. 1 Lakh or such higher capital as may be prescribed; and
(b) by its Articles of Association:
(i) restricts the right to transfer its shares;
(ii) limits the number of its members to 50 which will not include:—
A. members who are employees of the company; and
B. members who are ex-employees of the company and were members while in such
employment and who have continued to be members after ceasing to be employees;
(iii) prohibits any invitation to the public to subscribe for any shares or debentures of the company; and
(iv) prohibits any invitation or acceptance of deposits from persons other than its members, directors or their relatives.

Therefore by virtue of Section mentioned above loan can not be taken from employee by a Private Limited company unless they are also a member, director or relative of the director(s).

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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04 September 2013 After considering the above provisions it is advisable that the director of the private company first must take a personal loan from employees and then director should give loan to company which is within the ambits of the above provisions.

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Querist : Anonymous

Querist : Anonymous (Querist)

04 September 2013 Please define relative of director.
And also is mother's real brother included in definition of relative??

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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05 September 2013 no mothers real brother is not included in the definition of relative.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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05 September 2013 Mothers real brother not included.

Sec. 2(41) "relative" means, with reference to any person, any one who is related to such person in any of the ways specified in section 6, and no others.

Sec. 6. Meaning of "relative" — A person shall be deemed to be a relative of another if, and only if,

# they are members of a Hindu Undivided Family; or

# they are husband and wife; or

# the one is related to the other in the manner indicated in Schedule IA.

SCHEDULE IA SPECIFIES THE LIST OF RELATIVES AS UNDER:

1. Father 2. Mother (including step mother) 3. Son (including step son) 4. Son’s wife 5. Daughter (including step daughter) 6. Father’s father 7. Father’s mother 8. Mother’s mother 9. Mother’s father 10. Son’s son 11. Son’s son’s wife 12. Son’s daughter 13. Son’s daughter’s husband 14. Daughter’s husband 15. Daughter’s son 16. Daughter’s son’s wife 17. Daughter’s daughter 18. Daughter’s daughter’s husband 19. Brother (including step brother) 20. Brother’s wife 21. Sister (including step sister) 22. Sister’s husband

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Querist : Anonymous

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05 September 2013 Thanks for reply ....

Querist : Anonymous

Querist : Anonymous (Querist)

05 September 2013 Thanks for reply ....

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