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Loans from directors & others by private company

Mahesh (Student CA IPC / IPCC) (67 Points)

04 February 2016

Dear Sir My Query is one of the Private Company taken loan from Directors & Other persons and Company Net-worth is negative of -16,00,000 and taken loan amounting to 56,00,000 it allowable to company accept loan as so.. please clarify me...

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6 Replies

CS Vivek Sharma (Practising Company Secretary) (424 Points)
Replied 04 February 2016

Yes it is allowable but director has to give a declaration in writing that the fund given by him is not borrowed fund.

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CS Divesh Goyal (Practicing Compnay Secretary) (51450 Points)
Replied 04 February 2016

If Companies Net worth is Negative and Company is taking loan then as per Section 180(1)(c) pass a Special Resolution before accepting of Loan.

Mahesh (Student CA IPC / IPCC) (67 Points)
Replied 05 February 2016

thax..

sunil (dfd) (92 Points)
Replied 05 February 2016

Please see Section 180 (link below) is not applicable on Private Companies. Please cross -check

https://www.dokmart.com/companies-act/sections

thanks & regards

sunil

Yashwant Patel (Working with CA firm) (117 Points)
Replied 06 February 2016

Loan taken from Directors - Declaration from director

Loan taken from others - Company have to follow all the procedures of the companies act 2013

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CS MOHIT SALUJA (PRACTICING CS Jalandhar 9914558709) (5155 Points)
Replied 07 February 2016

If the company is a private limited company, it may accept the laon from directors or their relatives as per exemption provided by the MCA. However, teh company need to check whether the person from whom loan is being taken come under the ambit of definition of "Relative" or not.