02 August 2013
A CFO of an unlisted public company(but he is not and has never been in past a director of the company) seeks an interest free loan which is 5 times the amount of his CTC! Promoter has agreed to give the loan orally. what are the various points/ issues that need to be taken care of? He has the signing authority of the cheques of the company. Can he draw cheque for loan to himself? Is Any resolution required by the board?
02 August 2013
As you mentioned CFO is not a director of the company i.e. he is only a employee of the company, therefore to check validity of loan amt. you should check loans & advances policy of the company
otherwise board resolution is also an alternative with you
CAclubindia
