loan taken from director
This query is : Resolved
sarvesh kumar
(Querist)
09 July 2010
i am a promoter, Director & Shareholder of a private ltd company. I have shares of Rs 400 Lacs in my personal capacity. i am planning to pledge these shares to one FInancial Institution & take loan against these shares. now i have two option.
option-1
i take the loan from Institution in my name and then give the same loan to my comp. comp will pay interest to me on such loan. can i charge interest at rate which is higher than the rate at which i am paying interest to financial Institution.
Option-2
I take the loan directly into company's name.
which option is more convenient
option-1
i take the loan from Institution in my name and then give the same loan to my comp. comp will pay interest to me on such loan. can i charge interest at rate which is higher than the rate at which i am paying interest to financial Institution.
Option-2
I take the loan directly into company's name.
which option is more convenient
Ankur Garg
(Expert)
09 July 2010
Hi,
A private company can take loan from its directors. According to me you should go for option-II to avoid any prima facie liability.
Loan should be in company's name for better transparency. According to me the same is quite convenient from the administrative point of view.
Wait for other expert opinions...
A private company can take loan from its directors. According to me you should go for option-II to avoid any prima facie liability.
Loan should be in company's name for better transparency. According to me the same is quite convenient from the administrative point of view.
Wait for other expert opinions...
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