UNSECURED LOAN BY PRIVATE LIMITED COMPANY TO RELATED PARTIES
This query is : Resolved
03 January 2024
Can a private limited company give unsecured loans to its directors and other related directors
03 January 2024
No... Company can't give loan to directors, (Related Directors) Share holders and Other related parties...
20 January 2024
Seems like a Company can provide loan, guarantee or security without any restrictions under following cases:
a. Given to Managing Director or Whole time Director » as a part of the conditions of service extended by the company to all its employees;
or » pursuant to any scheme approved by the members by a special resolution; or
b. Company providing loan in the ordinary course of business activity.
https://taxguru.in/company-law/company-give-loans-directors-relatives.html#google_vignette
a. Given to Managing Director or Whole time Director » as a part of the conditions of service extended by the company to all its employees;
or » pursuant to any scheme approved by the members by a special resolution; or
b. Company providing loan in the ordinary course of business activity.
https://taxguru.in/company-law/company-give-loans-directors-relatives.html#google_vignette
20 January 2024
Pvt Ltd company can receive loan from Directors, Shareholders. but, company can't give loan to it's directors, shareholders...
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