Can a private limited company take loan from director?

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Querist : Anonymous (Querist)


26 September 2011

If a director has taken a loan from a bank by pledging his FDs,and bank transfer the funds to company's loan a/c, comapny directly repaying the loan to bank on behalf of director,

then can it be treat as a loan taken from bank by the comapny or it should be treat as a unsecured loan from director?

RG - A Helping Hand (Expert)


28 September 2011

Yes it would be considered as unsecured Loan to company from director. The same should be authorised by passing a board resolution u/s 292.

RG



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