Can a company take loan of rs 110 lakh(1crore 10 lakh) ?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 November 2011 Sir Please Help me.........

Can a company take loan of rs 110 lakh(1Crore 10 lakh) ?

the Autorised Capital of the Company 10lakh.

Actually Dis is a new Company with Authorised Capital of 10 lakh , the Company wants to purchase a Land of Value Rs 1 Crore 20 Lakh..... Can Company take loan of Rs1Crore 10 lakh From Directors . Please Suggest Me.....

If Yes then what is the procedure .?

Chandan Kumar Shaw (CA final student)

CA.JASPAL SINGH

CA.JASPAL SINGH (Expert)
Follow

22 November 2011 Yes it can take loan but it will have to get approval of Members in General Meeting as per Section 293(1)(d) of the Companies Act as the loan is in excess of its Paid-up Capital and free reserves.

And yes Company can borrow from Directors.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

23 November 2011 Thank you Sir,

If the company is closely held company Both the director is the only shareholder in the company. Then it is necessary to held meeting.