What is the procedure to take unsecured loan from outsiders, promoters by Pvt Ltd?
Is there any maximum limit to take loan ???
As per the provisions of the Companies Act , a private Company cannot accept any deposit from the individual or partnership firm as its is abondoned as per the defination of private Company.
A private Company can accept the deposits from the members upto 100% of the paid up share capital, free reserves and securities premium and can accept any amount from Directors or relatives of Directors provided that director or relative of such Director shall submit declaration that the fund is borrowed out of its own fund and not borrowing from outsider or banks or financial institution.
If private Company fails to comply with the these provisions, then private company will be covered under the deposits and will have to follow the provisions of deposits
CAclubindia
