Hi,
Can someone clarify whether it is ok for a Pvt.Ltd.Company to accept a loan (by way of account payee cheque, ofcourse) from one of its directors to meet an emergency ?
Kindly advise
Thanks
Gireesh
3 Replies
CS Smriti Sharma
(ACS, B Samrish & Co.)
(880 Points)
Replied 05 March 2012
Yes, A private 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.
Mayank Agarwal
(Practice)
(55 Points)
Replied 13 March 2012
Director of a pvt ltd taken a term loan of its name and shown it company accounts . Beacuse company is newly incorporate
Tanveer Md Masood
(Indispensable)
(361 Points)
Replied 23 August 2012
SEC.295 STATES THAT DIRECTOR CANNOT TAKE LOAN FROM A PUBLIC COMPANY.
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