Section 73,185,186

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NITIN MITTAL

NITIN MITTAL (Querist)
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11 July 2015 PLZ TELL ME FROM WHOM A COMPANY CAN ACCEPT A DEPOSIT AND TO WHOM A COMPANY CAN ADVANCE A LOAN

CA Neelam Maheshwari

CA Neelam Maheshwari (Expert)
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11 July 2015 A company can borrow:-
• From its directors provided the fund given by director must be out of his own fund and not from borrowed fund. (Director has to give declaration that the amount he is giving is not out of borrowed funds).
• Banks and financial institutions.
Now company cannot accept loan from its Shareholders and director’s relatives.
A company cannot give:-
• Director of co. which is its holding co.
• To its director.
• Relative of director.
• Any firm in which such director is partner/ or relative is a partner.
• Any partner of such director.
• Any Private limited co. in which such director is a director or a member.
• Body corporate in which such director or director’s hold more than 25% shares.
• Body corporate in which MD, BOD, Manager act in accordance with director or BOD of lending Company.

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NITIN MITTAL

NITIN MITTAL (Querist)
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11 July 2015 Please tell can a company accept deposits from a body corporate or not

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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11 July 2015 @ Neelam Ji

Pvt Ltd company can accept loan from share holders. Loan should be 'secured' and charge has to be created. The cap is not exceeding 100% of the aggregate of paid up capital and free reserves.

Ref:- MCA Notification GSR 464(E) dated 5.6.2015.

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B.COM, ACA, DISA Namrata

B.COM, ACA, DISA Namrata (Expert)
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13 July 2015 Nitin, inter corporate deposits can be taken subject to limits specified u/s 186 and 180 (1)(c)

B.COM, ACA, DISA Namrata

B.COM, ACA, DISA Namrata (Expert)
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13 July 2015 Just to add the Companies Ammendment Act brought in June 2015 has exempted private companies from complying with provisions of S 180 and also they can accept deposits from shareholders without any credit rating or circular requirements.

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