RACHANA DAGA (CS) (555 Points)
10 November 2014Dear Experts,
Can HUF give funds to Director as he is being karta of this HUF and can Director give this fund to Company as there is rule said Director can give the funds to company subject that he has not taken funds from any other person.
Kindly do the needful .
Thanking you.
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 13 November 2014
Funds of HUF belong to the family and not to Karta alone. Director in his individual capacity has to borrow funds from HUF. Rule 2(1)(c)(viii) of Companies (Acceptance of Deposits) Rules 2014 reads as under:
| (viii) | any amount received from a person who, at the time of the receipt of the amount, was a director of the company: | |
| Provided that the director from whom money is received, furnishes to the company at the time of giving the money, a declaration in writing to the effect that the amount is not being given out of funds acquired by him by borrowing or accepting loans or deposits from others; |
Pl check compliance of this rule.
CAclubindia
