28 June 2012
A private company can give the loan to a partnership firm provided- Firm is not related party and only surplus money can be given as a loan otherwise it may contravene the object clause of the MOA.
28 June 2012
Thank you so much Amit Sir. I have one query more regarding this , in case one of the director is a partner in the partnership firm to which company wants to give unsecured loan or make a investment, is it possible for the company to do that?
28 June 2012
It will be deemed dividend u/s 2(22)(e) if the director is entitled to 20% or more of profits/loss of the firm. However, dividend shall be limmited to accumulated profit. Section 297 of companies act shall also get attracted.
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