Loan to a pvt. ltd. co.
This query is : Resolved
27 March 2012
Dear Friends/Experts
I would like to inquire if a Proprietorship firm in which one the co.'s Director has interest can extend loan to the company ? if Yes, Is there any limit to that?
Appreciate a quick response.
Thanks in Advance
I would like to inquire if a Proprietorship firm in which one the co.'s Director has interest can extend loan to the company ? if Yes, Is there any limit to that?
Appreciate a quick response.
Thanks in Advance
28 March 2012
No problem in that. Partnership firm in which the director has interest can't take loan from the Company u/s 295 but can give the loan to the Company. The Transaction will also be exempted under under section 297. Further 295 is not applicable on pvt. company.
28 March 2012
Many Thanks Mr. Ahuja
This is of great help.
Regards
Deepak
This is of great help.
Regards
Deepak
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