Loan from director to company
This query is : Resolved
Trupti Shah
(Querist)
15 May 2009
Is board resolution required for a director giving loan to company.And whether there is any restriction on the amount of loan to be given
Ankur Garg
(Expert)
17 May 2009
As far as Company Act is concerned yes board resolution is required.
If a compant accepts loan from its directors a board resolution u/s 292(1)(c) is required to be passed.
Further in the board meeting that director should disclose his interest u/s 299 and in passing the resolution above that particular director can not participate in the voting & can not be considered in quorum as per section-300 of companies act.
Please go through section-292, 299 and 300 deeply for more understanding.
Regarding restriction on loan amount please go through section 293(1)(d).
Also ensure accounting treatment of loan amount.
Best Regards
If a compant accepts loan from its directors a board resolution u/s 292(1)(c) is required to be passed.
Further in the board meeting that director should disclose his interest u/s 299 and in passing the resolution above that particular director can not participate in the voting & can not be considered in quorum as per section-300 of companies act.
Please go through section-292, 299 and 300 deeply for more understanding.
Regarding restriction on loan amount please go through section 293(1)(d).
Also ensure accounting treatment of loan amount.
Best Regards
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