Loan to individual by pvt. ltd

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Querist : Anonymous

Querist : Anonymous (Querist)

30 November 2016 Dear Experts,
Pls clarify can A pvt. Ltd company give the loan to individaul? If so what's its criteria

Regards
Manish

Jatin Bajaj

Jatin Bajaj (Expert)
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30 November 2016 Yes, According to section 186 of the Companies Act 2013, A private Company can give loan to any person or any body corporate but not exceeding 60%( paid of share capital+ free reserve+ securities premium) or 100% of free reserve + securities premium) whichever is higher subject to passing board resolution in Board Meeting.
and according to Rule 11 of meeting of Board and power rule, Company will have to make register of Loan in MBP 2. And as per section 179 of Companies Act 2013, Company has to file MGT 14 within 30 days of passing resolution

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