Loan from share holder

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 February 2017 Dear Experts,
Pls clarify :- can A pvt. Ltd. Company accept the loan from its share holder if so? What its procedure

Regds
Akhil Gautam

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
Follow

23 February 2017 Yes.

Subject to the following conditions;
1. money accepted from members does not exceed 100% of the Paid up share capital and free reserves
2. If the Company wants to accept the deposits of more than 100% of paid up share capital and free reserve from the members of the Company then company can accept the same by following the procedure mentioned under Section
a. Passing a members resolution,
3. Making provision for security, if any for due repayment of the amount of deposit accepted and interest thereon (not less than 12.5% at present) including creation of charge (Form CHG1) on the property or assets of the Company.
4. Filing the details of the money accepted with the registrar

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

23 February 2017 1. Can accept loans from shareholders up to 100% of the aggregate of paid up share capital and free reservces.

2. Such companies shall file the details of monies so accepted with the ROC.

PS:- Inference is from Circular 9/2005 dated 5.6.2015.

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