All directors giving loan to company

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Professional
107 Points Joined December 2012

I want to know about a situation where all directors giving loan to the company. Let's say a private company having three directors A, B, C and each one having 8L, 5L, 2L as equity. The directors A, B, C will give loan 4L, 3L, 2L respectively to company.

Please reply if there is any problem in the above approach. Thank you.

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On 07 October 2020 at 02:15 Report
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Tax and Business Consultant
11616 Points Joined July 2015
A private limited company can accept loan from its director or relative of director from their own funds only.
Director & relative has to furnish a declaration to the company that loan is being provided from own funds & without taking loan from other.
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On 07 October 2020 at 08:40
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Management Trainee
80 Points Joined May 2018
1. Board approval under section 179
2. Ensure that such funds falls under the ambeit of EXEMPTION TO DEPOSIT DEFINITION otherwise Deposit provisions will apply
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On 10 October 2020 at 21:22


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