Loan from directors, do we need to repay?

This query is : Resolved

Anirudh Hegde (Querist)
Follow

08 July 2015 If a small private limited company with Share Capital of 5,00,000 and only 4 members has outstanding loan received from directors as on 1-4-2014, as per the new Companies Act, 2013 does it have to give it back? or is it okay to retain it in Balance Sheet as on 31-3-2015?

Vijay Parmar

Vijay Parmar (Expert)
Follow

12 July 2015 Hi... Refer below

Companies (Acceptance of Deposits) Rules, 2014

c) “deposit” includes any receipt of money by way of deposit or loan or in any other form, by a company, but does not include

- (viii) any amount received from a person who, at the time of the receipt of the amount, was a director of the company:

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 loans or deposits from others

please not below
1. your company is private company
2 company has not taken any loan from member means shareholder.
3. company has taken loan only from director

so , as per above point and subject to section 73... company can take loan from its director....

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