Sec 185

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Amit Nandy (Querist)
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08 February 2014 Please let me know whether private ltd co can take loan from Director of the company and person in whom the director is interested

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Amit Nandy

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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09 February 2014 Section 185 of Companies Act deals with the Loan to directors.

A private limited company can accept loan from its directors and their relatives as the same will be treated as deposits.

See section 58A of Companies Act 1956. (Corresponding Section of Companies Act 2013 is Section 73 which is not among the 98 section which are in force.)

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