Interest free loan to a director by pvt ltd.co.consequences

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 December 2014 1.A small Trading Pvt Ltd.Co.has given in Oct.2014 ,interest free-loan of Rs.10 lacs to a whole -time Director.What are thw consequenes ?
2. Can a whole-time of a small Pvt Ltd. Co.who is the age of 73 years and drawing Rs.50000/- p.m.can still continue as such. No such period was defined at the time of appointment.Please advise.

Thanks a lot.

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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21 December 2014 The same can be comes under the preview of Section 2(22)(e) if he also shareholder of the company holding more than 10 % of share capital
Yes he can continue as director of private company