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Acceptance of deposit by private company

ANKITA TIWARI (Company Secretary) (57 Points)

28 August 2014

Can private Company accept loan from LLP as per companiesd Act,1956.If yes, under which section?

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9 Replies

(Guest)

ya it can .. section i think i had to check once again... but yes they can take

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ANKITA TIWARI (Company Secretary) (57 Points)
Replied 28 August 2014

I need to know the section.As per defination Pvt Company cn't take deposit except from shareholders,directors and relatives. But deposit definations include loan.

(Guest)

we can take the loan as an advance if there is any work in between both is done./.. or if we allots one share too llp then we can take loan...

look seriously it is a very typical issue so its always best to avoid these things..

stil m quoting an wonderful detailed analysis u can study that

https://www.legmed.in/2013/06/unsecured-loans-unsecured-debentures-by.H T M L

(Guest)

yup agreed with u if there is no relation in between them then we cant talk loan

ANKITA TIWARI (Company Secretary) (57 Points)
Replied 28 August 2014

Both the Company and LLP have same management.

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(Guest)

ya i had seen many instances.. bt there must b a reason for having loan like any job charges agreement or somewhat else na...

but stil its contradictory so i wil suggest to avoid such transaction

(Guest)

transaction done on which behalf ???

ANKITA TIWARI (Company Secretary) (57 Points)
Replied 28 August 2014

transaction took place already.......I just wanna ensure its not contradicting any law and unde which section it will be covered.i read many articles everywhere its there it can take loan but proper sections are not mentioned.