Charu Sapra (CS) (35 Points)
02 May 2016
Kamal Kumar
(B.Com)
(647 Points)
Replied 02 May 2016
Allotment of Shares can be done but in case of loan to company, the company need to take a declaration from the director that he has not given out of borrowed funds
you may see the format at https://www.dokmart.com/documents/declaration-by-director-in-respect-of-loan-given-to-the-company/info
Charu Sapra
(CS)
(35 Points)
Replied 03 May 2016
The Director has borrowed the money he cant give declaration that he has not borrowed the amount.
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 03 May 2016
Yes, director can purchase shares of the company out of borrowed funds. There is no prohibition on this.
Pratik Shah
(Practising Company Secretary)
(4432 Points)
Replied 03 May 2016
I agree with Agrawal Sir.
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