kindly please tell me that can a Pvt. Ltd. Company can take loan from its director according to companies act 2013.
Taruna Agarwal (CA Practice ) (38 Points)
06 March 2014kindly please tell me that can a Pvt. Ltd. Company can take loan from its director according to companies act 2013.
Priya
(trainee)
(384 Points)
Replied 06 March 2014
Companies Act, 2013 has entailed provisions for giving or diversifying the Companies Fund to others however for the well being of the Company, Loan could be taken from the directors.Other views are solicited.
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 06 March 2014
Rule 2(b)(ix) of Companies (Acceptance of Deposits) Rules 1975 permits borrowing from director of the company and it will not be treated as public deposit. However, corresponding provisions of Companies Act 2013 are yet to be notified. Hence we have to wait for final Rules in this regard.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
CAclubindia
