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Advance against Salary to Director

Others 6644 views 7 replies
Can a Private company give advance against salary to any director???
Replies (7)
The proviso of section185(1) provide that 185(1) shall not apply on loan to a Managing or Whole time Director as part of conditions of service extended by the company to all its employees, (same condition on which company gives loan to all its employees) or according to scheme approved by the members by passing special resolution.
My query is for Directors other than MD and WTD
same rule is also applicable on directors .
In accordance with provisions of sub-section (1) of section 185, Save as otherwise provided in this Act, a Company shall not, directly or indirectly, advance any loan, including any loan represented by a book debt, to any of its directors or to any other person in whom the director is interested or give any guarantee or provide any security in connection with any loan taken by him or such other person.
Originally posted by : Vinod Babu
In accordance with provisions of sub-section (1) of section 185, Save as otherwise provided in this Act, a Company shall not, directly or indirectly, advance any loan, including any loan represented by a book debt, to any of its directors or to any other person in whom the director is interested or give any guarantee or provide any security in connection with any loan taken by him or such other person.

I can't understand this one... Can You explain with details??!

can pvt company give advance salary of 2-3 month to director?
and will it be considered as loan?
https://www.caclubindia.com/experts/advance-salary-to-directors-2458384.asp


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