All directors giving loan to company

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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.

Replies (2)
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.
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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