Borrowing money for a private ltd firm for its projects.

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Ranjithkumar (Querist)
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11 August 2011 Can a private ltd company borrow money from any other persons for the development of its project?

from shareholders or non-share holders?

under which section?

by giving promisery notes or any other kind of bonds?

please do help me

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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12 August 2011 Borrowing is restricted from a person who,
at the time of the receipt of the amount, was a director, relative of director or
member:-
Provided that the director or member, as the case may be, from whom
money is received, furnishes to the company at the time of giving the
money, a declaration in writing to the effect that the amount is not being
given out of funds acquired by him by borrowing or accepting from others.

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