Loan to Director
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
10 April 2010
Pvt Ltd. Co. paid EMI of Personal loan taken by Shareholder and debited EMI's paid to Share Application Money Account.
As A Auditor what should be the prof. opinion.
Kindly refer to Sections affceted of Companies Act.
As A Auditor what should be the prof. opinion.
Kindly refer to Sections affceted of Companies Act.
Ankur Garg
(Expert)
10 April 2010
We can not treat the above transaction as loan to director u/s 295 as section 295 is not applicable to a purely private company.
Regards
Regards
10 April 2010
If a Pvt. Ltd. Company paid EMI of personal loan of Shareholder, Then how can you debited Shareapplication money account, whether Share application money recd is not converted into share capital.
If yes, then until & unless Share Application money is not coverted into share Capital , The person cannot be treated as Shareholder.
Other expert's view is solicited.
If yes, then until & unless Share Application money is not coverted into share Capital , The person cannot be treated as Shareholder.
Other expert's view is solicited.
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