Loans to/from directors of a pvt. ltd. co.
This query is : Resolved
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
23 April 2014
hello ruchi ,
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
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
Message likes :
1 times
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
- TDS on Consultancy- Non DTAA
- Depreciation of fixed assets- coop housing society in mumbai
- Reopen of assessment proceeding
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- EPF FULL & FINAL RULES IN 2026
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Reprocessing of rectification order AY 2025-26
- FTS Taxable under 115A
- Rental income gst and it purpose
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
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
