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Query on companies act, 2013

08 August 2014

Respected Sir/Madam, I have a query regarding accepting of deposit under Companies Act, 2013. There are two companies namely ABC Pvt. Ltd (Lending Company) and XYZ Pvt. Ltd (Borrower Company). Mr. Suresh is common director in both of the companies. Financial position of both the companies is as under:- Particulars ABC Pvt. Ltd. XYZ Pvt. Ltd. Share Capital 10,00,000/- 1,00,000/- Reserves and Surplus 90,00,000/- 2,50,000/- Secured Loan 15,00,000/- 50,000/- 1. Whether ABC Pvt. Ltd. can give loan to XYZ Pvt. Ltd.? If yes, then upto what extent it can give loan to XYZ Pvt. Ltd.? 2. Would your opinion be different if there is no common director and/or relative? 3. Upto what limit XYZ Pvt. Ltd. can accept loan? 4. What is the detailed procedure to be followed for both the companies? Thanks & Regards, Ramesh Purbia

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7 Replies

Vandana J Doshi (Practising Company Secretary) (12562 Points)
Replied 11 August 2014

Hi, first of all amount given to another company by one company is not a deposit.....

Secondly, for your queries you refer to sec 185 and sec 186 of the CA 2013 and relevant rules.....

If after going through the same, you stil have any query, post here.....

Vaibhav Sharma (Chartered Accountant) (23 Points)
Replied 23 July 2015

Dear sir/madam,

I have an query about acceptance of advances from director who is also a shareholder in that private company .

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 27 July 2015

What is the query?

LIJESH (Student CS) (23 Points)
Replied 26 September 2015

Originally posted by : P C Agrawal
	What is the query?

LIJESH (Student CS) (23 Points)
Replied 26 September 2015

I have doubt about for procedure for incorporation section 8 company.

NANDLAL YADAV (4 Points)
Replied 25 June 2023

Yes you can accept advance/ loan from a Director of the Company. However, Director has to give a declaration that the amount which he is giving is his own money and not borrowed from any where. Please see deposit rules for specific wording of the declaration.