A director of a Pvt Ltd co. is also a partner of a LLP. The director of the company takes a loan from LLP. How many sections of the Companies Act attract this transaction?
1 Replies
Jatin Bajaj
(CS)
(2930 Points)
Replied 06 June 2019
As per Section 185 of the Companies Act 2013, no Company shall give loan to the Directors or the relative of the Director who is the partner.
But in case of private Limited Company, the Company can give loan to the Director or relative of Director who is the partner in case the following conditions are satisfied:
1. No body corporate has invested the money in that private Compny
2. amount borrowed from banks or financial institution shall not exceed twice the amount of paid up share capital or 50,000 whichever is lower.
3. The Company has not defaulted in the repayment of loan.
If these conditions are not satisfied, then Company cannot give loan to director or the relative of director who is the partner.
As Section 185 would be attracted as it is the default punishable under the Companies Act 2013
Recent Topics
- Gratuity under CTC
- GST refund paid as estimated tax liability
- Salary Income and Professional services income
- Sec 54 and TDS on sale of property
- Airbnb Manager - I manage properties for owners
- Wrong head ed for late fee
- Inter Company trnafer
- Job work-Reg
- Who is liable to pay GST if bank charges excl GST
- Cost of Acquisition IPO cases
Related Threads
Trending Online Classes
-
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
Mr.Balamurugan Ranganathan15 November 2024
CAclubindia
