23 April 2014
Can XYZ Pvt. Ltd. Co. give or take a loan in F.Y 2013-14 & F.Y. 2014-15 from its managing or whole time directors who are also tha shareholders of the co.?
What are the Provisions in thos regard
As per sec 185 of companies act 2013 ( provisions relating to loan to directors ) No company can give any loan to its directors or to any person in whom the director is interested or give any guarantee with any loan taken by him ..... but the loan to a director can be given if there was a scheme approved by the members by passing a special resolution and also
if the company has given any loan , the due payment of loan would be collected by the company at an interest not less than the bank rate decalred by RBI...
Any contravention to the above provision would make the company liable for a penalty of min. 500000/- to max.2500000and the director who has taken loan would be liable for prosecuution by imprisonment of min. 6 months and also a fine of min 5L to 25L
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