Unsecured loan of director

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 August 2012 Director without holding any shares (Qualifying shares not required) had invested in the Pvt. Ltd. Company. if he resigns as Director and his unsecured Loan is still with Company (not repaid). in this case weather this is a violation under sec. 58 of The Companies Act.

Jiten Gupta

Jiten Gupta (Expert)
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01 August 2012 Company is defaulting U/S 58. It can take loan from a person in individual capacity if that person is not Director/Member.

CS Ankur Srivastava

CS Ankur Srivastava (Expert)
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01 August 2012 No. The Private Limited Company cannot accept or invite any deposit except its directors, shareholders and their relatives.

In case the Director has resigned, and his deposit is due to be repaid. It will be repaid on due date and further the Company will not renew the same.

Kindly note the provisions of Acceptance of Deposit Rules are not applicable on Private company. Thus is would be classified under Unsecured Loan.

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