Unsecured Loan From Directors and Shareholders

Page no : 3

srinivas.j (ArticledAssistant) (100 Points)
Replied 27 June 2011

Dear sir,

What is the maximum interest payable on unsecured loan taken from directors of a public limited company. Is it as per SBI interest or how??

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CA Kishan Kabra (CA) (173 Points)
Replied 04 July 2011

Respected Sir,

Plz Help

Can private Company take loan or deposites from another private company.

Jayashree S Iyer (Company Secretary) (3224 Points)
Replied 05 July 2011

It can accept loans subject to provisions contained in Section 372A of the Companies Act, 1956.

Any amount borrowed by a company from another company does not fall under the term "deposit" as per Section 2(b)(iv) of the Companies (Accpetance of Deposit) Rules, 1975.

Punit (Article) (22 Points)
Replied 15 June 2012

dear all,

if some one tells me who are the directors relatives in case of loan taken by private limited company?

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 15 June 2012

No Company shall invite or accept or renew any deposits in any form, on a rate of interest exceeding the maximum rate of interest as prescribed by the Reserve Bank of India at rests which shall not be shorter than monthly rests.

At present the maximum rate is 12.5%.

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CA Naheed Shaikh (Sr Associate Sap_Fico) (23 Points)
Replied 29 June 2013

Dear Mr Ankur garg,

Thank you so much for the valuable information.

I would further like to ask what if a director of a pvt ltd co. had taken loan from some individual and then provided the same to the company in his capacity as a director?

Regards

CA Naheed shaikh

Assistant manager accounts

Dharni sampda pvt ltd