Can a compnay can take loans from private parties or share holders or directors
MATTA CHANDRA SEKHAR (accounts) (624 Points)
04 March 2010Can a compnay can take loans from private parties or share holders or directors
S. Satheesh Kumar
(Assistant Company Secretary)
(84 Points)
Replied 04 March 2010
As per Section 58A read with Section 372 A:
Private Companies can accept loan from its shareholders, Directors and Corporate Bodies.
Public Companies can accept loan from its Directors and Corporate Bodies only and not from member.
Rasesh
(CS CWA MBA (Fin) B.Com LL.B (Spl))
(6501 Points)
Replied 05 March 2010
A company can obtain loan from private limited company but one has to analyse whether sec 2(22)(e) would be attracted since the payment / loan is given by private company.
cssuchigupta
(Legal & Taxation Manager)
(21 Points)
Replied 05 March 2010
can a private company accept loan from its director and if yes thn to wht extent and if the company is registered in UK thn can it accept loan from its director (in cse of PUC and PLC ) and wht regulation are to be applied
Rasesh
(CS CWA MBA (Fin) B.Com LL.B (Spl))
(6501 Points)
Replied 05 March 2010
A Private limited company registered in India can accept deposit from Directors without any limit.
As regards a company registered un UK, I am not aware.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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