Loan

yes he can

Originally posted by : amit
	Can a director take any loan or advance from his private limited company ?

Hi Amit,

For Private Companies- Section 185- Loan to Directors is allowed subject to the following conditions:- (Refer MCA Notification dt 05.06.2015 - Exemptions to Pvt Companies which is attached herewith)

1. in whose share capital no other body corporate has invested any money.,

2. if the borrowings of such a company from banks or financial institutions or any body corporate is less than twice of its paid up share capital or Rs. 50 crore, whichever is lower., and

3. such a company has no default in repayment of such borrowings subsisting at the time of making transactions under this section.

Regards,

Arjun Rajagopal

Thanks Arjun