loan to shareholder
This query is : Resolved
Vinit Garg
(Querist)
27 January 2011
hello experts
are there any restriction for giving loan to shareholder of public limited company or to shareholder of private limited company?
plz tell me legal provision under companies act,1956.
are there any restriction for giving loan to shareholder of public limited company or to shareholder of private limited company?
plz tell me legal provision under companies act,1956.
CA Sanat Pyne
(Expert)
10 February 2011
CHECK THE SHAREHOLDING OF THE DIRECTOR/SHAREHOLDER. IF IT IS MORE THEN 10% AVOID GIVING LOAN AS THE SAME CAN COME WITHIN THE PERVIEW OF SEC.2(22)(e) i.e. Deemed Dividend.
For public limited company
see section 295(2)(a)(i).
CHECK THE SHAREHOLDING OF THE DIRECTOR/SHAREHOLDER. IF IT IS MORE THEN 10% AVOID GIVING LOAN AS THE SAME CAN COME WITHIN THE PERVIEW OF SEC.2(22)(e) i.e. Deemed Dividend.
For public limited company
see section 295(2)(a)(i).
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