loans

This query is : Resolved

SUNEET V.MAHALE (Querist)
Follow

09 February 2010 What is the extent to which a Private Limited Company can accept loans from its directors and members.

Can Interest be paid on such loans

Can a Pvt. ltd. Company have a minimum share capital of Rs. 100,000/- and raise all other funds through loan from directors shareholder and their family members (out of their Own funds and not through borrowings in personal account)

Ankur Garg

Ankur Garg (Expert)
Follow

09 February 2010 Hi,

Am presuming that your co. is a purely private co. and there is no upper limit as far as acceptance of loan is concerned from director as section 293 is not applicable to a purely pvt. Co.

Payment of int. is a very good idea.

Yes. Pvt. Co. a Pvt. ltd. Company can have a minimum share capital of Rs. 100,000/- and raise all other funds through loan from directors shareholder and their family members but what about debt equity reatio.

Views of other experts solicited.

Regards

SUNEET V.MAHALE

SUNEET V.MAHALE (Querist)
Follow

09 February 2010 Thanks
CS Ankur

Can you please explain me whether there are any stipulations as to maintaining of specific base level debt equity ratio.

Thank you

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now