Loan from sole proprietorship of director

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 October 2016 Hi,

Can a company take loan from a proprietorship firm in which director of company is proprietor.

Thank

c.bakshi (Expert)
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13 October 2016 No, that amount will treated as deposit as per the provisions of the Act. company can take loan from its director as unsecured loan

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