Can director father give loan to company
This query is : Resolved
20 January 2024
i am director of a private limited company my question is
1) can my father give loan to company from borrowed funds?
2) he borrowed personal loan from bank and give loan to my company?
1) can my father give loan to company from borrowed funds?
2) he borrowed personal loan from bank and give loan to my company?
22 January 2024
According to the statute; a business may only borrow up to 60% of its paid-up share capital and free reserves from directors, shareholders, or relatives of directors. The interest rates for the loans shall not be less than those that are currently being charged in the market for loans of a similar nature.
https://taxguru.in/company-law/loan-director-shareholders-companies-act.html
https://taxguru.in/company-law/loan-director-shareholders-companies-act.html
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