I would like to inquire if a Proprietorship firm in which one the co.'s Director has interest can extend loan to the company ? if Yes, Is there any limit to that?
28 March 2012
No problem in that. Partnership firm in which the director has interest can't take loan from the Company u/s 295 but can give the loan to the Company. The Transaction will also be exempted under under section 297. Further 295 is not applicable on pvt. company.
CAclubindia
