11 July 2015
A company can borrow:- • From its directors provided the fund given by director must be out of his own fund and not from borrowed fund. (Director has to give declaration that the amount he is giving is not out of borrowed funds). • Banks and financial institutions. Now company cannot accept loan from its Shareholders and director’s relatives. A company cannot give:- • Director of co. which is its holding co. • To its director. • Relative of director. • Any firm in which such director is partner/ or relative is a partner. • Any partner of such director. • Any Private limited co. in which such director is a director or a member. • Body corporate in which such director or director’s hold more than 25% shares. • Body corporate in which MD, BOD, Manager act in accordance with director or BOD of lending Company.
Pvt Ltd company can accept loan from share holders. Loan should be 'secured' and charge has to be created. The cap is not exceeding 100% of the aggregate of paid up capital and free reserves.
13 July 2015
Just to add the Companies Ammendment Act brought in June 2015 has exempted private companies from complying with provisions of S 180 and also they can accept deposits from shareholders without any credit rating or circular requirements.
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