Loans to company & deposits?

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CA Yogesh Garg (Querist)
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23 December 2013 Please Tell me in the light of provisions of New Companies Act 2013. Can a private company accept any unsecured loan from its members and/or directors? Whether the same comes under the ambit of Deposits as per clause 73-76 of New Companies Act 2013.
Reason of the Doubts.
Section 58A of companies Act 1956 specifically provides to not to include loan from directors and members. But as per me nothing contained in the current regime having clause 73-76 exclude the same.
Definition of deposits in the current regime includes loans in deposit.

Ajay Mishra

Ajay Mishra (Expert)
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23 December 2013 Yes, you can take unsecured loan from its director, members and their relatives. Read Rule 2(1)(ix) of Deposit Rules. It has given exemption to private companies.

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CA Yogesh Garg

CA Yogesh Garg (Querist)
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23 December 2013 Sir I think it is also as per old provision. Please clarify according to New Regime.

Ajay Mishra

Ajay Mishra (Expert)
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23 December 2013 See...

Definition of private company in new CA, 2013 is changed and it delete the line of acceptance of deposit from director/members.

Now the provisions of section 73 to 76 of new CA, 2013 dealing with deposit is not effective. It means the provisions of deposit dealing with section 58A of the CA, 1956 is applicable.

When you read section 58A read with rules of deposit in which the above rule give exemption to private company.

So In absence of new provision of deposits rules old deposit provisions will apply on both public as well as private company.

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