Hi
Can someone clarify if its OK to accept a loan from a director(ofcourse, through a account payee cheque) to meet an emergency ?
Thanks in advance.
Gireesh
2 Replies
pramod yadav
(Company Secretary)
(150 Points)
Replied 05 March 2012
Dear Gireesh,
A private /Public 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.
Regards,
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 06 March 2012
You should pass a Board resolution for taking loan from director.
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