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A director loaned £5 lakhs to their private limited company, which was used to buy machinery. The company is now failing to repay the loan. The director cannot simply take or sell the machinery to recover their funds. Instead, their primary legal recourse is to sue the company. However, given it's a private company likely controlled by the directors, practical recovery might be complex and requires further clarification on the company's financial situation.

VARUN RANJAN

VARUN RANJAN (Querist)

03 March 2020 A Pvt company has 2 directors A & B. Director A loaned Rs. 5 lakhs to the company which was used to purchase machinery. The company is not returning the loan to Mr. A.
Can Mr. A sell or take over the machine?

Akash Monwani

Akash Monwani (Expert)

03 March 2020 Mr. A can Sue the company , but he cannot sell or retain the machinery

Eswar Reddy S

Eswar Reddy S (Expert)

03 March 2020 It is Pvt ltd.So mostly it will be under the control of the two directors. Practically you can't say that the company is not returning. Can you elaborate your story??

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