Acceptance of loans from relatives of directors

Roopesh Gangisetty (Article trainee) (176 Points)

02 April 2015  

Dear All,

 

Can a Private Company accept deposits from relatives as per Companies Act 2013?

And my second query is as per CA 1956-A Private Company can accept loan from relatives of Directors and such amount shall not be treated as Deposit because of Rule 2(b)(ix) of Companies Acceptance of deposits rule 1975.

then as per CA 2013, shall such Loan to be treated as Deposit and to be repaid or it shall not be covered under Deposit?

 

TIA