Loan by a joint shareholder

Sumit Jaiswal (Company Secretary) (818 Points)

21 May 2013  

We know that a private company can accept loan from a shareholder of the company. My question is that in case of joint holders of shares, if the 2nd joint holder gives a loan to the company, will it be exempt? Can a private limited company accept a loan/deposit from any of the joint holder or only from the first named holder?

 

One view may be that both the joint holder are shareholders of the company, so even if the 2nd named holder gives the loan it must be exempt. Another view may be that since as per the Companies Act, the first named joint holder is recognised for the purpose of dividend and voting rights, the company can only accept loan from the first named holder.

 

Please share your views. If possible, kindly quote relevant section or Ramaiya, for my ease.