FINANCE
262 Points
Joined October 2013
As per Sec 185 - loan to director is disallowded if llp have partner who is director of lending company.
If LLP in which loan is given no director is partner in llp then loan can be given by the company subject to sec 186 i.e within the limit of 100% free reserve or 60%of paid up capital+free reserve+security premium whichever is higher.
But loan /Capital contribution can be made by company to LLP subject to above