If a director of private limited company pays off companies creditors out of his borrowed funds would that amount to loan to the company by director from his borrowed funds? A company is undergoing financial crunch so is director. Company is not in a position to borrow from outsiders/banks hence director want to borrow fund from a bank and pay off the creditors. Please advise.
Thanks in advance.
Menu
Director paying companies creditors.
Replies (1)
If directors provides loan to company out the borrowed funds it shall amount to deposit under Rule 2(viii), companies acceptance of deposits rules, 2014. So need to comply with procedure of acceptance of deposits.
Thanks
Thanks
Recent Topic
- Is CA through direct entry easy for a commerce stu
- Dividend and withholding tax - DTAA- RSU
- NRI Query: Capital Gains Tax Exemption under Secti
- Royalty payment to UK
- Calculate ITR2 tax with equity and non equity prof
- LTCG on residential property sale - Rebate?
- TDS MISMATCH AND AIS
- Return filing for intervening period upto date of
- EPF Withdrawal taxation
- While e filing otp not generating
Related Topics
CAclubindia
