Is there any limit on payment of interest of unsecured loan accepted from directors by pvt companies as per new company act 2013
Neha Jhanwar (article) (103 Points)
19 March 2015Is there any limit on payment of interest of unsecured loan accepted from directors by pvt companies as per new company act 2013
CS Durgesh Soni
(COMPANY SECRETARY)
(88 Points)
Replied 19 March 2015
Rule 2(c)(viii) of the Companies (Acceptance of Deposits) Rules, 2014 doesn't take into consideration any amount received from a person who at the time of receipt of the amount by the Company was a director of the Company.
Rule 3(6) of the Companies (Acceptance of Deposits) Rules, 2014 -Rate of interest of deposits/payment of brokerage Rule 3(6) states that no company under sub-section (2) of section 73 or any Eligible company shall invite or accept or renew any deposits in any form, carrying a rate of interest or pay brokerage thereon at a rate exceeding the maximum rate of interest or brokerage prescribed by the Reserve Bank of India for acceptance of deposits by non-banking financial companies.
Since there isn't other provision regarding paying of interest on loan from Directors, the matter isn't yet clear. Lets wait for other replies.
Thanks & Regards,
CS Durgesh Soni
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