06 March 2010
Can a Private limited company can give loan or advane to its Director or his Proprietorship Firm. Paid Up Capital 10 Lakhs, Reserve & Surplus (Premium) 100 lakh, Willing to Provide loan or advance of 50 Lakh to its Director or his proprietorship firm for 1 year period. Let me make it clear that the company does not have accumulated profit and do have reserve & surplus from share premium. Will that be taken as deemed dividend