brijesh kumar (student) (61 Points)
21 July 2018when a company loan taken from an individual that is like shareholders and directors of the company is valid or not?
for example UNSECURED LOAN CONSIST:
loan directors/ shareholders
loan intercorporate
unsecured loan personal/huf
please explain the compliances of above ?
CA Sunil Kumar
(Chartered Accountant)
(4524 Points)
Replied 21 July 2018
Shailvi Agarwal
(COMPANY SECRETARY)
(184 Points)
Replied 23 July 2018
brijesh kumar
(student)
(61 Points)
Replied 23 July 2018
yes, according to companies Act 2013 a private company can borrow only from directors
Jatin Bajaj
(CS)
(2930 Points)
Replied 23 July 2018
The Company can borrow the money from its directors by passing the board resolution as per section 179 of the Companies Act 2013. Director has to file declaration that such loan shall be given out of its own fund and not from borrowing outside.
However company can borrow the money from its member upto 100 perecnt of the paid up share capital, free reserves and securities premium amount.
However the Company cannot take loan from the partnership firms as partnership firms are not included in Body corporates. But Company can take loan from LLP as LLP is covered under the defination of Body Corporates
Priya
(Professional)
(117 Points)
Replied 01 October 2018
A company took amount of Rs. 3000 from a person who was a Director earlier but not on the date of transaction. The person is relative of a person who holds majority shares of the Company. At present he is neither a Director or Shareholder. Company is showing such amount under current laibilties as fees paid by such person. Is it permissible under Companies Act 2013?
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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