Can a pvt ltd co borrow / make advance to directors & mebers of the company with new co act 2013.
Raja Gopal (Head - Finance) (28 Points)
24 April 2014Can a pvt ltd co borrow / make advance to directors & mebers of the company with new co act 2013.
Vandana J Doshi
(Practising Company Secretary)
(12562 Points)
Replied 24 April 2014
No restriction on borrowing from directors but subject to section 180(1)(c) of the new Act. Borrowing from members to be treated as deposits and relevant provisions applicable.
Giving loans to directors specifically prohibited in Section 185 of the new Act.
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