loan to partner
CA Rupal Patel (CA) (48 Points)
31 March 2017
can LLP give loan to it's partner or relative of partner?
CA Rupal Patel (CA) (48 Points)
31 March 2017
Yes a partner can give loan to LLP and have the same rights to that of other
outside creditors, Since LLP has a distinct legal identity apart from its member
making the partners and LLP two different persons. Even though the governing
statute doesn't put any restrictions for loan from partners to keep the transactions
fair and genuine, the loan should be granted at an interest rate not higher then that of loan from outsiders.
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
LIVE Course on Foreign Exchange Management Act (FEMA)(without recording)
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