Sourav Chatterjee (Management Trainee) (171 Points)
13 July 2012
What are the Compliances to be made by a Private Co. when it gives loan to its Director?
Your views are invited.
Thanking you in advance.
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 13 July 2012
The provisions of section 295 relating to Loans to Directors by the Co are not applicable to a pvt co unless it's an subsidiary of a public co.
so if the pvt co is not an subsidiary of the public co, it can give any amount of laons without any restrictions. however the co should pass a resolution at the general meeting for granting loans to directors.
Sourav Chatterjee
(Management Trainee)
(171 Points)
Replied 13 July 2012
Thank you...but why did you specify general meeting...why cant we pass a board resolution and give loan to a director....is there any specific reason for it??
Please guide.
CAclubindia
