Loan from director

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

15 April 2015 A private limited company with 1 lacs paid up capital wants to take loan from director to meet its short term financial requirements. The amount required as loan is more than paid up capital and free reserves of the company so a special resolution needs to be passed.

My query is - whether we need to mention the amount of loan required to be taken from director in the special resolution or we may pass a general special resolution to authorize the company to take loan from directors to meet short term financial requirements.

Arpit Shah

Arpit Shah (Expert)
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16 April 2015 http://taxguru.in/company-law/provisions-companies-act-2013-pertaining-acceptance-giving-loans-company.html

Querist : Anonymous

Querist : Anonymous (Querist)

16 April 2015 Thanks for reply Arpit,

In the present case, the company proposed to take Rs. 5 Lacs loan from one of its directors. Paid up capital and free reserves are only Rs. 1 lacs. No doubt, Special resolution is required to be passed. My query is - do we need to mention the amount of proposed loan of Rs. 5 lacs in the Special resolution? or we can authorise the company via Special resolution to take loan from director in excess of agreegate of paid up capital and free reserves

Thanks in advance...