05 May 2009
Dear Sir, Suppose a Director withdrewing every month Rs. 10,000 from a company. 1.Whether it should be treated as loan to director? 2.If yes, what is the rate of percentage of interest on loan? 3. Is there any alternative method of treating this withdrawal by director as per companies act? 4. which section deals about this?
05 May 2009
1. Yes, it can be treated as a loan. 2. There is no such minimum or maximum limit. It is charged as per the loan agreement or the rate approved my members in the general meeting. 3. You can post these transactions into Director's current account in Company Books and charge no interest.
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