Loan to director

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Querist : Anonymous

Querist : Anonymous (Querist)

15 December 2013 Hello Experts,
Can u please help me regargind whether a Pvt ltd company can give loan to directors??
what is d procedure and is there any conditions???

Thanks in advance

CS Adnan Shaikh

CS Adnan Shaikh (Expert)

16 December 2013 As per section 185 of Companies Act, 2013, even a pvt ltd co cannot give loan to directors except conditions mentioned in clause a & b of subsection 1 of section 185.

Regards,
Adnan

Ajay Mishra

Ajay Mishra (Expert)

16 December 2013 Now Private company come under the preview of section 185 of new Companies Act, 2013 dealing with Loan to director.

Querist : Anonymous

Querist : Anonymous (Querist)

16 December 2013 i wanna know about companies act 1956??
our is a pvt ltd co and its has given loan to its directors in previous year so want to know its valid or not??

Ajay Mishra

Ajay Mishra (Expert)

16 December 2013 Yes, you are eligible to give loan under section 292 of the Companies Act, 1956.

Querist : Anonymous

Querist : Anonymous (Querist)

16 December 2013 Thanks but what is the procedure??
is der any resolution required and is it considered as deemed dividend??

Ajay Mishra

Ajay Mishra (Expert)

17 December 2013 Pass Board Resolution under section 292 of the Companies Act, 1956.

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