Borrowing Money

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Can a company borrow money from shareholders.
Replies (3)
I think it may happen by issuing new shares

There are various mode to accept money from members of the Companies by way of  right issue, private placement, preferential issue. 

Another way accept money by way of deposit subject to limit as provided in rule 3 of deposit rules. 

Compliance pass Board Resolution 

Pass ordinary resolution subject to limit of section 180(1)(c)

Comply deposit chapter compliance 

Like filing circular before issuing to members or newspaper advertisement. 

Maintain record of deposit 

Acknowledge the receipt of money as deposit to deposit holder. 

This is based on my personal understanding of the provisions of the Companies Act, 2013 

There are various mode to accept money from members of the Companies by way of  right issue, private placement, preferential issue. 

Another way accept money by way of deposit subject to limit as provided in rule 3 of deposit rules. 

Compliance pass Board Resolution 

Pass ordinary resolution subject to limit of section 180(1)(c)

Comply deposit chapter compliance 

Like filing circular before issuing to members or newspaper advertisement. 

Maintain record of deposit 

Acknowledge the receipt of money as deposit to deposit holder. 

This is based on my personal understanding of the provisions of the Companies Act, 2013 


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