Can Pvt Ltd company borrow money from a Director relative. i.e. Sister, Brother in Law and Father in Law.
If yes, can we pay them interest???
How long we can take their money, 2 yrs, 3 yrs, 4 yrs???
Vinod (MD) (24 Points)
08 May 2011Can Pvt Ltd company borrow money from a Director relative. i.e. Sister, Brother in Law and Father in Law.
If yes, can we pay them interest???
How long we can take their money, 2 yrs, 3 yrs, 4 yrs???
Jyotika
(study study n study)
(147 Points)
Replied 09 May 2011
Yes a pvt ltd company can take loan from relative of Director, it is exempt from definition of deposit under rule 2( x) but relative has to give declaration that it is not borrowed money, regarding period i dont think there is any limit, rate of interest I am not sure but normally its at prevailing lending rate of bank.
thanks
Csjyotika
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