Expenses done by the directors or promoters

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SANJAY KUMAR AGARWAL (Querist)
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17 August 2012 In the formation of a Private limited Co. the two promoters who were also the ditector in that company invested Rs. 75000/-each in CASH for the ROC Fees & other formation Expenses.

1. After formation can the above amount be shown as unsecured loans from directors in the companie's balance sheet even though it was not paid by cheque .

Amol S Joglekar

Amol S Joglekar (Expert)
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17 August 2012 The procedure followed by many company secretaries is that in the first meeting to be convened imediately after the incorporation, all such preliminery expenses are ratified and duly resolved. There is no harm in showing it to be loan from member / director/ or even uesd for issuing share capital

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