Loan to a Company against FDR in the name of one of the directors
This query is : Resolved
Chaitanyaa
(Querist)
18 February 2025
Resp Sir
Can a Company take loan against FDR in the name of one of the directors. Whether Section 185/186 permits it and what documents are required to be submitted by Company.
Can a Company take loan against FDR in the name of one of the directors. Whether Section 185/186 permits it and what documents are required to be submitted by Company.
CA R SEETHARAMAN
(Expert)
19 February 2025
Yes.Director can give guarantee at his own risk.If company goes for insolvency then he may have loose his fixed deposits to the extent of guarantee.
Disclosure in the financial statements is required for such arrangements.
Disclosure in the financial statements is required for such arrangements.
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