Loan
This query is : Resolved
24 November 2010
Can a Private Company give a loan to an Individual or Directors of there company?
Thanks in advance!!!!
Thanks in advance!!!!
24 November 2010
ya it can.
24 November 2010
Hi...
Agreed with expert! Provisions of section 295 of the Companies Act, 1956 are not applicable to an indpendent Private Company i.e. a Company which is not a subsidiary of a Public Company......
Best Regards
Udit Sharma
Agreed with expert! Provisions of section 295 of the Companies Act, 1956 are not applicable to an indpendent Private Company i.e. a Company which is not a subsidiary of a Public Company......
Best Regards
Udit Sharma
24 November 2010
Yes no problem in giving loan to an Individual or Directors of the Pvt Ltd co which is not a subsidiary of a Ltd Co. section 295 is applicable to a public company or a private company, which is a subsidiary of a public company.
24 November 2010
Dear Experts,
I have a doubt that why a company can give a loan to an individual who he doesnot know and when its main line of business differs?
Please assist
I have a doubt that why a company can give a loan to an individual who he doesnot know and when its main line of business differs?
Please assist
24 November 2010
In my opinion, the Private LimitedCompany can give loan only to the Directors or the Shareholders of the said Company.
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24 November 2010
@mohammed,
Loans may be given to employees, officers of the company,or to the directors..... etc.,
Loans may be given to employees, officers of the company,or to the directors..... etc.,
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25 November 2010
Agreed with Mr. Madhusudan............
25 November 2010
Thanks a lot to all for there valuable feedback, it cleared a huge doubt of mine.
30 November 2010
I am agreed with the above replies of all experts. But, if pvt. ltd. co. gives loan to its member then it can be treated as deemed dividend u/s 2(22)(e) of the Income Tax act, 1961 and the company will also have to deduct TDS on it u/s 194 of the said Act. But. if it is a loss making company and do not have accumulated profits then these provisions will not be applicable.
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