Priyanka (Accounts Manager) (60 Points)
21 May 2014My query is:
Can a Pvt. Ltd. Co. take a loan from another Pvt. Ltd. Co.??
The two companies are unrelated, and there is no common directorship, nor are the directors shareholders of the other company. There is absolutely no relation between the companies.
CA PRIYUL SHAH
(JOB)
(901 Points)
Replied 21 May 2014
Yes, Pvt co. can take loan from another Pvt. Company. But Loand provider Pvt co. can provide loan up to 60% of net worth or 100% of free reserves. (Section 186 of Companies Act,2013)
Priyanka
(Accounts Manager)
(60 Points)
Replied 21 May 2014
Is there any limit for the company receiving the loan?? Like, 25% of its Paid-up Capital and Reserves??
Vandana J Doshi
(Practising Company Secretary)
(12562 Points)
Replied 22 May 2014
Hi,
there is no restriction on taking loan...however, for company providing the loan, check the requirements of section 186 of the CA 2013......and for company receiving the loan, check the requirements u/s 180(1)(c)....
CA PRIYUL SHAH
(JOB)
(901 Points)
Replied 22 May 2014
No, There is no restriction for company receiveing loan from other company.
25% of paid up capital is applicable to loan form shareholders...
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