Can a Pvt Ltd Co give loan to LLP in which it is a partner ??
Can pvt ltd company give loan to llp in which it is partner
komal jain (Accounts & Finance Manager) (24 Points)
19 December 2015
komal jain (Accounts & Finance Manager) (24 Points)
19 December 2015Can a Pvt Ltd Co give loan to LLP in which it is a partner ??
SAMADHAN SHRIRAM
(FINANCE)
(262 Points)
Replied 01 January 2016
As per Sec 185 - loan to director is disallowded if llp have partner who is director of lending company.
If LLP in which loan is given no director is partner in llp then loan can be given by the company subject to sec 186 i.e within the limit of 100% free reserve or 60%of paid up capital+free reserve+security premium whichever is higher.
But loan /Capital contribution can be made by company to LLP subject to above
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