Sec. 25

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Dimpi Shah

Dimpi Shah (Querist)
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16 October 2009 Can a company registered under sec 25 take loans from directors and if yes to what extent?

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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18 October 2009 They can borrow from shareholders, if the director is a shareholder then they can borrow from him.

The rate of interest and terms of payment should be reasonable or not prejudicial to the interest of the company.

The amount can be borrowed should not exceed the limit as approved by the shareholders.