unsecured loan

This query is : Resolved

rinku gupta (Querist)
Follow

20 January 2009 can a private limited company accept unsecured loan from its employee. If no quote the section of the companies act prohibiting the same .If yes, than what is the procedure?

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
Follow

25 January 2009 A private ltd company can accept loan only from the share hodlers or banking companies or non banking finance companies.

If they accept from other than above it becomes a deposit violating sec 58A of companies act ie acceptance of deposits.

Explanation to section 58A states that loan also will be treated as deposit for the limited purpose of complying with this section of companies act

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now