loan to shareholder and its director
This query is : Resolved
rajender singh
(Querist)
31 March 2010
a pvt. co. can give adv to their director and shareholders
Ankur Garg
(Expert)
31 March 2010
Hello,
As by virtue of section 295(2)(a)(i) provisions of section 295 are not applicable to a purely private company hence it can provide adv to directors.
Regards
As by virtue of section 295(2)(a)(i) provisions of section 295 are not applicable to a purely private company hence it can provide adv to directors.
Regards
Message likes :
1 times
31 March 2010
PLEASE ALSO 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.
CA Ashok Kumar Sahu
(Expert)
01 April 2010
agree with expert
27 January 2011
I also agree with the reply of Ankur Garg.
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