Loan by private company to LLP
kajal panse (16 Points)
01 August 2019
Can a private company give loan to LLP in which it is partner?
kajal panse (16 Points)
01 August 2019
AMLAN12.
(STUDENT)
(120 Points)
Replied 01 August 2019
Jatin Bajaj
(CS)
(2928 Points)
Replied 02 August 2019
A private Company can give loan to any body corporate including LLP upto 60 percent of the paid up share capital and the free reserves or 100 percent of the free reserves whichever is higher. Provided that a Company may give Loan higher than the aforesaid limit by passing the special resolution in the general meeting.
But if the partner is the Director of the lending Company, a private Company cannot give loan to its LLP.
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