unsecured loan from shareholders' relatives
This query is : Resolved
19 December 2009
A private company has taken unsecured loans from the relatives of the shareholders. Will the same be considered as deposit under section 58A read with Companies (Acceptance of Public Deposit) Rules, 1975?
kindly do clarify me.
regards
RAJA RAJESWARI S
kindly do clarify me.
regards
RAJA RAJESWARI S
21 December 2009
Hello,
Yes the same would be considered as public deposit.
However unsecured loan taken from the relative of director of a private company is exempt from the definition of public deposit.
Rgards
Yes the same would be considered as public deposit.
However unsecured loan taken from the relative of director of a private company is exempt from the definition of public deposit.
Rgards
22 December 2009
Sir will the above amount to violation of Sec. 3(1)(iii) of the companies act which prohibits acceptance of deposits from public by a private company? If so, how to proceed?
Kindly clarify.
regards
RAJA RAJESWARI S
Kindly clarify.
regards
RAJA RAJESWARI S
28 December 2009
Well, following is exact text of exemption under clause (ix):
"Any amount received from a person who, at the time of the receipt of the amount, was a director of the company or any amount received from a RELATIVE OF A DIRECTOR OR ITS MEMBER by a private company."
It means relative of member of private company is exempted, provided he submits a declaration under Notification GSR 189(E) 12-Mar-04
Regards
Pawan KUmar Baid
"Any amount received from a person who, at the time of the receipt of the amount, was a director of the company or any amount received from a RELATIVE OF A DIRECTOR OR ITS MEMBER by a private company."
It means relative of member of private company is exempted, provided he submits a declaration under Notification GSR 189(E) 12-Mar-04
Regards
Pawan KUmar Baid
28 December 2009
Disagree
Dear Pawan ji you are simply misinterpreting the clause. This is not the exact clause. You miss the most inportant comma after "was a director of the company". Check yourself.
Next time be careful. There is no room for any sort of discussion. It is very much a settled rule that unsecured loans from the relatives of the shareholders is a public deposit.
Regards
Dear Pawan ji you are simply misinterpreting the clause. This is not the exact clause. You miss the most inportant comma after "was a director of the company". Check yourself.
Next time be careful. There is no room for any sort of discussion. It is very much a settled rule that unsecured loans from the relatives of the shareholders is a public deposit.
Regards
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Applicability
- Is Aadhar PAN linking required for opening bank account?
- Where to show the RCM on Rent paid to unregistered landlord
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- Application of 115BAC
- RCM - commercial rent paid to URP under GST
- Offsetting interest income against derivative trading losses
- TDS NUMBER SURRENDER
- GSTR-3B - Do I file nil when there is no sale but I've bought raw materials
- Legal heir raised refund , but refund issued to the closed account of deceased.
- Whether still royalty
- 20% OF DEMAND PAYMENT IN APPEAL
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
