Public commpany borrowing

This query is : Resolved 

13 March 2009 whether Public company can take loan from its Directors or Shareholders ?

Relevant sections or case laws

26 March 2009 The Public Company can take loans from the its Directors and Sgareholders. The Company has to comply with the provisions of the section 58-A of the Companies Act,1956 to accept the loans/deposits from the shareholders. In case loan is received from Directors of a public company, it is exempt from the provisions of section 58A, if the declaration as prescribed is taken form the concerned directors.



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