Loan from shareholders
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
04 February 2012
Can a director or shareholder grant a loan to private limited company and if yes then whether secured or unsecured and upto what extent? Thanx in advance.
Jatin Agrawal
(Expert)
04 February 2012
co. can very well accept unsecured loans from directors/shareholders
in my opinion co. cannot take a secured loan from shareholders/directors....coz it may prejudice the rights of unsecured creditors......allowing secured loans may affect the rights of third parties...so on this logic i believe it is not allowed..
still i lam leaving the question open for further comments from other experts
and please don't create a new thread...search first
https://www.caclubindia.com/forum/unsecured-loan-from-director-of-private-company-34234.asp
in my opinion co. cannot take a secured loan from shareholders/directors....coz it may prejudice the rights of unsecured creditors......allowing secured loans may affect the rights of third parties...so on this logic i believe it is not allowed..
still i lam leaving the question open for further comments from other experts
and please don't create a new thread...search first
https://www.caclubindia.com/forum/unsecured-loan-from-director-of-private-company-34234.asp
CS Ankur Srivastava
(Expert)
09 February 2012
A private limited company can very well accept deposits. However, deposits accepted from directors or shareholders of a private company is a exempted deposit. So limits would also not apply on that and it will be classified as exempted deposit.
CS Ankur Srivastava
(Expert)
09 February 2012
The cost of deposit is much lower than any other mode.
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