Deposit by a pvt ltd co.

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J K Sachdeva (Querist)

06 September 2013 A company can not take loan from outsider except Member, Director & Director Relatives.

A Pvt Ltd take a loan from a Partnership Company in which Director of Company is a partner. Is this situation is contravention of section 43 of Company Act.

Its urgent & plse must reply fast.

Thanks in Advance

Ajay Mishra

Ajay Mishra (Expert)

07 September 2013
Acceptance of deposit by a private company from a partnership firm:—
(a) If all partners of the firm are also the directors of a private company, such private company can accept unsecured loans/deposits from the firm. This case will be covered under rule 2(b)(ix) i.e. such a deposit is an exempted deposit.
(b) If all partners of a firm are not the directors of a private company i.e. some of them are the directors and remaining are the shareholders, still private company can accept deposit from the firm.
(c) If all partners of a firm are not the directors of a private company i.e. some of them are the directors, some of them are shareholders and remaining are relatives of a partners who is a shareholder. This case is not covered under rule 2(b)(ix).
(d) Where some partners are directors in a private company and remaining partners are not their relatives, private company cannot accept deposits from such firm.

A private company can take money and it will be not an default under section 43 if it comply the above provision.

J K Sachdeva

J K Sachdeva (Querist)

10 September 2013 Thanks Sir,

I will be more thankful, if u can provide me the link for given solution.

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