Relative of Directors
This query is : Resolved
CS Vandana Kacholia
(Querist)
02 July 2009
If Loans taken from relatives, is it necessary to make them shareholder of the company?? plz give reference of applicable section.
Thanks & Regards
Vandana
Thanks & Regards
Vandana
Ankur Garg
(Expert)
02 July 2009
Hi Vandana,
No.
It is not necessary at all to make them shareholder of the company.
In books of accounts they should be treated as creditors.
I don't think there is any section in company act which deals with such case specifically.
Best Regards
No.
It is not necessary at all to make them shareholder of the company.
In books of accounts they should be treated as creditors.
I don't think there is any section in company act which deals with such case specifically.
Best Regards
CA Nitin Wadhwani
(Expert)
02 July 2009
In a private loan can be taken from shareholders, directors and their relatives.
If loan is taken from any other person, the company becomes a public company on violation of Sec.3(1)(iii).
If loan is taken from any other person, the company becomes a public company on violation of Sec.3(1)(iii).
02 July 2009
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