Can director of a pvt ltd company take loan form company ?
This query is : Resolved
CA Abhishek Singh
(Querist)
01 June 2012
Hello everyone,
my question:
1. can a diretor of a pvt ltd company holding say 50% shares take loan from the company ?
2. can director of a pvt ltd company give loan to the company at interest rate say in excess of 30% pm. ?
waiting urgently for ur reply ?
my question:
1. can a diretor of a pvt ltd company holding say 50% shares take loan from the company ?
2. can director of a pvt ltd company give loan to the company at interest rate say in excess of 30% pm. ?
waiting urgently for ur reply ?
Ajay Mishra
(Expert)
03 June 2012
Hi
The provisions of section 295 of Companies Act, 1956 relating to loan to director will not apply to private company unless it is subsidiary of public company. So you are free to give and accept loan to and from directors.
Regards
The provisions of section 295 of Companies Act, 1956 relating to loan to director will not apply to private company unless it is subsidiary of public company. So you are free to give and accept loan to and from directors.
Regards
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