Upto what amount a pvt ltd company can accept loan from directors and their relatives?
Is there any restrictions like sum of share capital and reserves?
seema singla (chartered accountant) (356 Points)
17 January 2017Upto what amount a pvt ltd company can accept loan from directors and their relatives?
Is there any restrictions like sum of share capital and reserves?
Jatin Bajaj
(CS)
(2930 Points)
Replied 18 January 2017
as per mca notification dated 15th september 2015, a private company can accept the deposits from Directors and their relative provided such director or relative shall give the declaartion that such a amount is received from his personal funds and not from borrowing from banks or other source and such a declaration shall be disclosed in Director Report.
any amount received either intrest Loan or intrest free loan from directors or his relatives shall not be considered as deposit,.
Jatin Bajaj
(CS)
(2930 Points)
Replied 18 January 2017
For private limited company, company as per section 179, Read with section 180(1)(c) , a private company can borrow the money upto the agregate of pid up share capital and free reserve or exceeding the paid up share capital and free reserve by passing the Board resolution in the Board Meeting. No need of any kind of shareholder approval by way of special resolution - notification dated 5th june 2015
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