CA Kishan Kabra (CA) (173 Points)
02 July 2011Respected Sir,
Plz help me..
(1) If a private company taken a loan from their directors, than Board approval is required or not.
(2) If we are taking loan from same director several times in a year, than every time board approval required or not.
(3) If a private company taking a loan from their members the board approval required for taking loan.
(4) What is the minium rate of interest and time Duration.
Arvind Sharma
(ACA)
(1432 Points)
Replied 02 July 2011
| Originally posted by : Kishan Kabra | ||
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Respected Sir, Plz help me.. (1) If a private company taken a loan from their directors, than Board approval is required or not. Yes (2) If we are taking loan from same director several times in a year, than every time board approval required or not. Single resolution will be enough with complete particulars and limits upto which loan can be took.. (3) If a private company taking a loan from their members the board approval required for taking loan. Yes (4) What is the minium rate of interest and time Duration. Not specified anywhere. Still rate should be in the line of market rates, other wise the same may be disallowed on the ground of excess payment to specified person u/s 40A of the Income Tax Act. |
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CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 02 July 2011
| Originally posted by : Arvind Sharma | ||
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Originally posted by : Kishan Kabra Respected Sir, Plz help me.. (1) If a private company taken a loan from their directors, than Board approval is required or not. Yes (2) If we are taking loan from same director several times in a year, than every time board approval required or not. Single resolution will be enough with complete particulars and limits upto which loan can be took.. (3) If a private company taking a loan from their members the board approval required for taking loan. Yes (4) What is the minium rate of interest and time Duration. Not specified anywhere. Still rate should be in the line of market rates, other wise the same may be disallowed on the ground of excess payment to specified person u/s 40A of the Income Tax Act. |
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agreed
Anjaly.P.A
( Article( CA Final))
(221 Points)
Replied 02 July 2011
| Originally posted by : Kishan Kabra | ||
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There is no specified rate . It means a reasonable rate.
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CA Kishan Kabra
(CA)
(173 Points)
Replied 02 July 2011
Thanx for replies.....
One more questions that, Any Private company can take loan from any other private company.
Nidhi Jain
(CS )
(987 Points)
Replied 04 July 2011
agreed from above view.
Any Private company can take loan from any other private company. Yes
CA Kishan Kabra
(CA)
(173 Points)
Replied 04 July 2011
| Originally posted by : Nidhi Jain | ||
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agreed from above view. Any Private company can take loan from any other private company. Yes |
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Ok.......bt other private company is not a member,not invested in Shares.
Shaily Jain
(Chartered Accountants)
(1054 Points)
Replied 04 July 2011
yes still it can take a loan even if neither its a member nor invested in share
Nidhi Jain
(CS )
(987 Points)
Replied 04 July 2011
u can because Section 295 and 372A shall not apply to purely private company (A company which is not subsy of a Public Co.)
CA Kishan Kabra
(CA)
(173 Points)
Replied 04 July 2011
| Originally posted by : Shaily Jain | ||
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yes still it can take a loan even if neither its a member nor invested in share |
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Thanx......
Than Noramaly Board Resolution should be passed for loan taken.
Nidhi Jain
(CS )
(987 Points)
Replied 04 July 2011
I thik that is enough but not sure so other views are invited
Dhawal
(Executive)
(27 Points)
Replied 05 July 2011
I have a query that is there any restriction on what amount of loan can be taken wrt share capital?
As i understand , for buyback there is a restriction.
however , if my share capital is 1 lac, what amount of loan I can take?
Also if loans are restricted, can i sell the shares at premium and get the funds? what kind of hurdle i will face ?
CA Suraj Prasad Shaw
(Chartered Accountant)
(504 Points)
Replied 05 July 2011
Please clarify that whether taking loan from directors does become accepting deposit, for which private limited company is restricted.......
Shaily Jain
(Chartered Accountants)
(1054 Points)
Replied 05 July 2011
yes always remember for private comapnies that generally board resolution is required for each and every case whether for loan, for new branch opening..etc.
CA Kishan Kabra
(CA)
(173 Points)
Replied 05 July 2011
| Originally posted by : Shaily Jain | ||
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yes always remember for private comapnies that generally board resolution is required for each and every case whether for loan, for new branch opening..etc. |
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Thanx for ur valuable information.
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