borrowing from directors
This query is : Resolved
Satya Prasad
(Querist)
25 September 2008
Hi All,
If a Company wishes to borrow money from its Directors then what are the procedures to be followed by that Company and its Directors? Is there any specific provision in the Companies Act which deals with the Borrowing from the Directors or just verifying the provisions in the Articles of Association of that Company is suffice?
Hi All,
If a Company wishes to borrow money from its Directors then what are the procedures to be followed by that Company and its Directors? Is there any specific provision in the Companies Act which deals with the Borrowing from the Directors or just verifying the provisions in the Articles of Association of that Company is suffice?
Guest
Guest
(Expert)
25 September 2008
i dont think that there is any restriction on borrowing from directos and associates by the company..
S.Srinivasaraghavan
(Expert)
25 September 2008
This will attract the provisions of section 58A, public deposits, if the company is a public ltd.
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