Loan from Director to Private Limited company

This query is : Resolved

Girish (Querist)
Follow

03 May 2011 1. A director, not a share holder of the Company (as per the articles of the company no need for acquiring qualification shares by a director), gives loan to a private limited company Whether this loan will be violation under S.58A. Such director may be Technical or directorship to an expert.

2. From which relatives of a director a private limited company can borrow funds/can take loan?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

04 May 2011 1) In the case of Pvt Ltd companies loan from directors,whether or not holding shares, is exempted from the purview of section 58A Provided that the director from whom
money is received, furnishes to the company at the time of giving the
money, a declaration in writing to the effect that the amount is not being
given out of funds acquired by him by borrowing or accepting from
others.
2) For list of relatives ,pl see section 6 along with schedule 1A (contains 22 entries) of the Companies Act,1956.

CA. Krishna K Neeraj

CA. Krishna K Neeraj (Expert)
Follow

04 May 2011 Agee with the expert's view

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

sandhya.v

Amit Bagla

Vidish Bhatt

CA. MOHIT SHARMA

T Ramachandran

Subscribe Now

Loan from Director to Private Limited company

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANT

Article Assistant

Accountant

CA Final

GST CONSULTANCY