Acceptance of unsecured loan by private company
CS Pooja (Company Secretary) (305 Points)
17 December 2011
Parashar
(Company Secretary 2004)
(1013 Points)
Replied 17 December 2011
Originally posted by : Learner | ||
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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. |
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Agreed.
Charu Srivastava
(Company Secretary)
(4210 Points)
Replied 17 December 2011
Yes it can...that mean a company is taking loan from Director because the identity of sole proprietor with its owner is same.
Ketan Ranade
(Company Secretary)
(64 Points)
Replied 09 January 2012
can private company accepts unsecured loan from relatives of members???
Ankur Garg
(Company Secretary and Compliance Officer)
(114778 Points)
Replied 09 January 2012
Hi,
INTER CORPORATE LOANS
Kindly appreciate, A public and private limited company can take loan from other company and body corporate and the same would be covered under section 372A as an inter corporate loan. The above is exempt from the deposit rules, 1975.
A public and private company can also take loan from Banks/PFIs under the same section 372A as an inter corporate loan.
But if such company takes loan from an individual the same would be considered as public deposit under section 58A read with Companies (Acceptance of Public Deposit) Rules, 1975.
As per the definition of deposit given in Rule 2 of the said rules “deposit means any deposit of money with and include any amount borrowed by, a Company but does not include certain amounts.
There are certain amounts which are not considered as deposit as per the rules above and such amount includes inter corporate transaction hence amount taken by company/bank and PFI from other corporate are not considered as deposit.
On the other hand amount taken by public company from individual is not covered in the exemption given by the said rule, hence amount taken by public company from individual is considered as deposit under section 58A read with Companies (Acceptance of Public Deposit) Rules, 1975.
LOAN FROM INDIVIDUALS/OUTSIDERS BY A PRIVATE COMPANY
Kindly appreciate, 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 consequence under section 43 shall apply.
Regards
krishna Murthy
(CTO)
(29 Points)
Replied 12 September 2012
Hi, My friend running a private ltd company, (Authorized Capital Rs. 10.00 Lakh) his friends (20 Nos) are ready to invest as unsecured loan each Rs. 100 lakh @ zero percent interest, for that they are asking each 2500 shares @ face value (Rs. 10.00). (My friend having 50000 shares, remains 50000 for all the friends). Is it possible with ROC ACTS.
krishna murthy
jaimini machhi
(V.V. Nagar)
(23 Points)
Replied 08 March 2014
can a private Co. take Deposite from its director & what is maximum limit for that & what limit the co. must repay it.
please advice...