29 September 2011
A private limited company can take unsecured loan from its shareholders, directors and their relatives and the same would not be covered under section 58A and other deposit provisions as such transaction is exempt by deposit rules 1975.
But if a private company takes unsecured loans from persons other than its shareholders, directors and their relatives the same would be considered as deposit under section 58A read with Companies (Acceptance of Public Deposit) Rules, 1975 and would be considered as a serious violation of section 3(1)(iii).
In case of this default consequences under section 43 shall apply.
Private Company can take unsecured loans from its members(Shareholders, Relatives)and there is no specific limit provided for unsecured loan for Pvt. Company, as per my limited knowledge of Company Law.
The Private Companies Can also accept intercorporate loans which are exempt u/s 58A, though there is no restriction on the company borrowing the money, the lending company has to observe limits of lending as specified in section 372A.
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