Loan to relatives of director of pvt ltd,whether permissible
This query is : Resolved
28 December 2012
I want to know Whether a private compnay can give loans to directors , relatives , partnership were directors are partners .
1)The company is not a lending company .
2)Which provision need to be followed ?
3)Thanks in Advance ...
1)The company is not a lending company .
2)Which provision need to be followed ?
3)Thanks in Advance ...
28 December 2012
As far as companies act is concerned there is no problem, but if the directors are also shareholder of the co and holding more than 10% of shares then the loan will be ragrded as deemed dividend u/s 2 (22)(e) of the income tax act.
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28 December 2012
1)Any board resolution required for approval of loan to directors ,relatives ,companies , partnership were directors /their relatives are interested ?
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