DEAR FRIENDS
IF A PVT LTD COMPANY RECEIVE LOANS FROM HIS DIRECTOR (DIRECTOR IS SHARE HOLDER OF THE COMPANY) & THE COMPANY CAN PAID INTEREST TO HIS DIRECTOR OF RECEIVING LOAN AMOUNT. PLEASE SUGGEST THE ABOVE QUERY.
2 Replies
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8539 Points)
Replied 04 May 2012
Yes. The Company can pay to its directors for the loans taken from them. However, care is to be taken that the interest rate is not too high as far as market rate is concerned.
Regit
(CA.Final)
(320 Points)
Replied 04 May 2012
Yes.of course. Company can pay Interest.
With out expecting any interest (If Int not allowed under law), who will give loan with 0 Interest??
-However, Int rate ahould be even with that of prevailing market rates.
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