Can a private limited company take loan from director?

This query is : Resolved 
 


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



You need to be the querist or approved CAclub expert to take part in this query .


Click here to login now



Similar Resolved Queries :






× Online Coaching My Enrolled Courses
Articles Forum News Experts Exams Share Files Income Tax Accounts Career Corporate Law Service Tax Video Judgements Rewards Top Members Events Albums Find Friends Featured Feed Scorecard Bookmarks Mock Test Poll Notification Knowledge Finder Coaching Institutes Trainee Corner Jobs
close x
  SHARE THIS