Advance to Director
Richa Shaw (45 Points)
08 May 2018
Can a pvt co give advance to a WTD from his salary?
5 Replies
Fatin Nizami
(338 Points)
Replied 08 May 2018
Yes, I guess. Let's wait for the experts' views on it.
Richa Shaw
(45 Points)
Replied 08 May 2018
Sir/Madam, please provide justification for the same too.
CS M Pota
(Company Secreatary)
(3186 Points)
Replied 08 May 2018
Dear Mam,
Black's Law Dictionary the definition of LOAN is "A loan of money is a contract by which one delivers a sum of money to another, and the latter agrees to return at a future time a sum equivalent to that which he borrowed. " The definition does not cover "Advance" ,Section 185 of the Comapniees Act 2013 relates to LOAN to Directors and not LOAN AND ADVANCE to Directors.
Secondly,WTD is an employee of the Comany of which s/he is WTO correct? if yes, all the rules and regulation applicable to the general employyes of the Comopany will be applied to WTD .If the Company has the policy that it gives Advance against salary to any employee the Comany can give to its WTD too.At the same time the following needs to be taken care of:
1) WTD Should be legally eligible for the salary.
2) The Advance to be given should be a part of disproportionate Salary
3) Is there any condition that if the advance salary give can not be recovered then to pay exorbitant interest ect. like it is inincase of loan etc.
If the Advace of Salary passes through the above then can be.
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