Nikkk (CA) (63 Points)
10 March 2016
prakash
(Company Secretary)
(1352 Points)
Replied 10 March 2016
Arora,
The private companies can give loans to directors, if following conditions are complied;
1. in whose share capital no other body corporate has invested any money.
2. if borrowing of such a company from banks or financial institution or any body corporate is less than twice of its paid up capital or 50 crores rupees whichever is lower and
3 Such a company has no defaults in repayment of such borrowings subsisting .
prakash
(Company Secretary)
(1352 Points)
Replied 11 March 2016
Arora,
It is as per section 185 of the CA, 2013, but you may not find same in respective section right now, since it is inserted by MCA Notification dated 5.06.2015, exemption to private limited company.
Enclosed notification for your reference, see point 14.
CAclubindia
