Loans taken by director
This query is : Resolved
Atul Singh Yadav
(Querist)
09 February 2010
I would like to know. Can a director take a personal loan from some financial institution on his personal name and repay this loan from the Bank account of the company? If yes, then how will it be treated in the books of company?
&
Can a director of public limited company give loan to the public limited co.? If Yes, What are the policy norms?
&
Can a director of public limited company give loan to the public limited co.? If Yes, What are the policy norms?
Ankur Garg
(Expert)
09 February 2010
Yes a director of public limited company can give loan to the public limited co.
For that purpose you have to pass a board resolution under section 292(1)(c).
For that purpose you have to pass a board resolution under section 292(1)(c).
Ankur Garg
(Expert)
09 February 2010
Regarding your first query I would suggest you to avoid repayment of director loan from company bank account as that would be equal to loan to director u/s 295 and you have to take CG approval for the same repayment.
Views of other experts solicited.
Best Regards
Views of other experts solicited.
Best Regards
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- GST input credit on commercial property
- GSTR-9C filing
- GST ITC as per notification 12/2023- central tax
- Urd purchase entry in tally prime
- Advances to related party
- Capital Gains Tax on Inherited Mutual Fund
- Royalty payments to the Mining Department for procurement of murum - GST input
- Gift to nri relatives residing in usa
- Form 144 TDS Return Validation Error – Mandatory Fields
- LLP audit and disclosure
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
