Can director father give loan to company

This query is : Resolved

Murali krishnan (Querist)
Follow

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?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

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

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Santosh Behera

KANHA ASSOCIATES

Smrity

Rajasekar

Rajesh

Subscribe Now

Can director father give loan to company

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Accountant

GST CONSULTANT

GST CONSULTANCY

Senior Executive

Manager- Finance and Compliance

CA Final