Securing loans with personal assets

Geetha Gupta (Accountant) (325 Points)

02 March 2015  

Hi all,

Suppose a director secures bank loans/overdraft facility in the current account with personal assets, then, will these personal assets be treated as loan to the company from by the director?

If so,

  1. under what section of CA2013?
  2. Also, what kind of resolution - ordinary or special or board resolution - is reqd w.r.t to the above transaction ? 
  3. Also, how will the transaction be treated in a pvt company?

If not, what will the treatment for this kind of transaction under CA2013 be?

Thanks in advance

Regards,

Geetha