Whether the company can accepts loan in cash from Director? Expert please clarify.
4 Replies
nayan
(article assistant)
(466 Points)
Replied 19 December 2012
yes if the memorandum and article of associations provide the clause for it. director cannot provide the loan to company in excess of amount specified in its article of association.
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 19 December 2012
Refer to section 269SS and 269T. Loan in cash should not be accepted for value exceeding 20,000/-.
INDAZAR
(Articled Assistant)
(301 Points)
Replied 20 December 2012
It is allowed.
It is also shown in notes to accounts under the head RELATED PARTY DISCLOSURES.
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