Private ltd company

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 March 2012 Can a Pvt Ltd Company with the Authorised and paid up capital of Rs.1,00,000/- can borrow unsecured loans from directors??
If, yes than can Interest be charged at differential rates to different directors??

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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17 March 2012 A private company can accept loan from a person who, at the time of the receipt
of the amount, was a director of the company.
However, the director from whom money is received, furnishes to the company at the time of
giving the money, a declaration in writing to the effect that the amount is not being
given out of funds acquired by him /her by borrowing or accepting from others.
Interest can be paid at, generally, not less than the bank rate.

Ajay Mishra

Ajay Mishra (Expert)
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17 March 2012 Agree with expert.....

Deposits in case of Private Limited Company

Private Company is prohibited to accept any invitation or acceptance of unsecured loans/deposits from the persons other than its members, directors or their relatives. Therefore a private company can accept deposits through private arrangement from its members, directors and their relatives.

Rule 2(b)(ix) exempt any unsecured loan money received from directors and shareholders from the definition of deposits. According to Rule 2(b)(ix), any amount received from members of a private company limited by guarantee are not exempt.

Rule 3 of Companies (Acceptance of Deposits) Rules, 1975 deal with the limit upto which a company can accept deposits/ loans. Private company exempted this limit.

For any invitation and acceptance of unsecured loan/deposits from relatives of directors and member, the company will have to file a statement in lieu of advertisement in accordance with the provisions of Rule 4A of the Companies (Acceptance of Deposits) Rules, 1975. The company will also have to file annual return of deposits in accordance with Rule 10.

Regards

Querist : Anonymous

Querist : Anonymous (Querist)

17 March 2012 Thanks a lot sir..

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