Well my question is there any limit upto which a director who is also a shareholder of a private Ltd Firm can withdraw and salary and if he/she could withdraw salary say like for 6 months or more in advance?
Well my question is there any limit upto which a director who is also a shareholder of a private Ltd Firm can withdraw and salary and if he/she could withdraw salary say like for 6 months or more in advance?
As per the provisions of the Section 185 of the Companies Act 2013, a Company can give loan to its Managing Director or whole Time Director as part of service extended to employees and by passing Special resolution.
But Loan given to other Director is prohibited or loan cannot be given to any other person in which Director is interested specifically for personal use.
But private Company can give loan to other Director if the Conditions mentioned in section 185 are satisfied for its principal business activities.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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