Can a public limited company get a loan from its directors/ promoters and promoter group?
if yes can anyone help me on the procedures?
Swarupa sneha (student) (29 Points)
29 November 2012Can a public limited company get a loan from its directors/ promoters and promoter group?
if yes can anyone help me on the procedures?
CA Mangesh Chitale
(B. Com. A.C.A. DISA (ICAI) DIRM (ICAI))
(245 Points)
Replied 29 November 2012
Yes. It is quasi equity. No such formal procedure.
poonam verma
(Company Secretary)
(191 Points)
Replied 30 November 2012
Yes a Public Ltd. can take loan from Directors and there is no formal procedure for this. Sec. 295 belongs to giving loan, guarantee/ Security by public ltd co. to its Director not vice-versa.
CAclubindia
