Good Evening to All,
If Director spend some amount for official purpose (like meetings, Conveyance etc), for that amount, can we pay the interest to the Director..
Awaiting for your kind reply......
1 Replies
Dhawal Mohnot
(Practicing)
(449 Points)
Replied 23 December 2010
if that amount is immediately reimbursed there is no question of interest. If it is kept as loan then interest can be paid. Disclosure under CARO requires an auditor to disclose the loans taken from and given to directors and interest charged/recd thereon and whether the same is not abnormal. Entry should also be made in register of directors maintained u/s 301 of the companies act.
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