CS Arjun Rajagopal
(B.com, ACS)
(1056 Points)
Replied 31 March 2016
| Originally posted by : amit | ||
 |
Can a director take any loan or advance from his private limited company ? |  |
Hi Amit,
For Private Companies- Section 185- Loan to Directors is allowed subject to the following conditions:- (Refer MCA Notification dt 05.06.2015 - Exemptions to Pvt Companies which is attached herewith)
1. in whose share capital no other body corporate has invested any money.,
2. if the borrowings of such a company from banks or financial institutions or any body corporate is less than twice of its paid up share capital or Rs. 50 crore, whichever is lower., and
3. such a company has no default in repayment of such borrowings subsisting at the time of making transactions under this section.
Regards,
Arjun Rajagopal
CAclubindia
