Mortgage
This query is : Resolved
27 September 2010
Can a company Mortgage/pledge its Asset and give loan (with that proceedings) to one of its Director as Loan??
is there any restriction under Company law, if so please specify with section numbers..
is there any restriction under Company law, if so please specify with section numbers..
Ankur Garg
(Expert)
27 September 2010
In case of a public company loan to director is governed by section 295 and you have to obtain previous approval of central govt before providing loan assistance to the director.
However section 295 is not applicable to a private company.
Regards
However section 295 is not applicable to a private company.
Regards
27 September 2010
Sorry for not mentioning it, In my case it is a PRIVATE Limited Company..
Ankur Garg
(Expert)
27 September 2010
In case of a private company it is all right to give loan to director. For this you have to pass a board resolution before providing loan assistance to director. No need to charge company’s assets bcoz company is giving loan and not taking any assistance.
Regards
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
- EPF ECR NEW FILE SEP 17TH 2026
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- Capitalgain tax purposes for valuation report compulsory
- Oct 2025 Invoices
- Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)
- Under marginal scheme
- Import of Software Service.
- TDS on Fixed Assets purchased
- TAX AUDIT ON PROFESSIONAL INCOME
- GST on Renting godown to KFCSC for Storage of Raagi
- Capital Gail Exemption Certificate
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- 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
- 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
- How to pay remaining amount of TDS after due date?
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
