Query on appointment of directors in a pvt. ltd. company

This query is : Resolved

CA Rohan Bajaj (Querist)
Follow

27 November 2015 We have a Pvt. Ltd. company with 2 directors. Now we want to appoint new directors replacing the existing ones.

But both the new directors are already partners in a firm which accepts and lends loans/advances/deposits to this pvt. ltd. company.

My query is that can the partners in firm be made directors in the pvt. ltd. company whereby company and firm transacts in above manner.

Ajit J Sharma

Ajit J Sharma (Expert)
Follow

28 November 2015 yes you can take partners of firm in your company as a Director, Section 185 of the Companies act 2013 is applicable to a Companies and not to firm. Therefore, a firm can lend money to Company even after their partner is on the Board of the Company.

Ajit J Sharma

Ajit J Sharma (Expert)
Follow

28 November 2015 however, a company can not give a loan / provide security / guarantee to the firm after their partner on the Board of the Company. but there are condition if it satisfies then the company may do.

CA Rohan Bajaj

CA Rohan Bajaj (Querist)
Follow

28 November 2015 There have been a recent amendment by MCA exempting pvt. Ltd. Companies from applicability of sec. 185 subjected to following conditions. We fulfill all the conditions as of now. So, are there any restrictions even now in this relation?

Ajit J Sharma

Ajit J Sharma (Expert)
Follow

28 November 2015 no, if you satisfy those condition read with section 185.