Loans taken by a company

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Ramalinga H.B (Querist)
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01 May 2009 Hi,

Can a private company take any loan/advances from another private company?The business of the above both the companies are not lending or borrowing. Both are independent company & not related in any way. What are the other implecations if any private companies take loans from the outsider?

Kindly reply soon.
Ram

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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01 May 2009 A private company can take loan from another private limited company ( it should not be a subsidiary of a public limited company).

The lender and receiver also should pass appropriate resolutions as per companies act.