Loan

239 views 2 replies

Sagar

123 Points Joined March 2012

Dear All,

Please advise whether private company can take loan from any financial institution by keeping investments of director's wife/son as a security, who is also shareholder of the company.

Thanks

Replies (2)

prakash

Company Secretary

1352 Points Joined January 2012

Dear Sagar,

What do you mean by Investments, does it mean shares, if yes, Company can place it as security with bank and avail credit facility, what is prohited giving of loan to related parties.