28 December 2009
These rules are governed by partnership deed. Only restrction for Cash loan and cash repayment of loan. You need to take loan by account payee cheque and should also pay by same.
But an another restriction in sec. 295 of Companies Act. According to this Section No Company can give any loan or guarantee for loan to Firm in which director or relative of Director are Partners without prior approval of Central Government Can you give me any other refrence besides it regarding loan to/from Firm
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