Loan from directors, shareholders & outsiders
This query is : Resolved
16 May 2009
Dear Sir,
CAn a unlisted public company & deemed public company accept loan from its directors, shareholders & outsiders.
Please reply ASAP.
Thanks
CAn a unlisted public company & deemed public company accept loan from its directors, shareholders & outsiders.
Please reply ASAP.
Thanks
17 May 2009
As far as Company Act is concerned there is no problem.
if a compant accepts loan from its directors etc. 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 and 293 deeply for more understanding.
Also ensure accounting treatment of loan amount.
Best Regards
if a compant accepts loan from its directors etc. 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 and 293 deeply for more understanding.
Also ensure accounting treatment of loan amount.
Best Regards
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