Dear Members,
One of the Pvt ltd company has taken 50 lakh from a Third party individual (Mr. A) for its business. Neither Mr. A has been allotted any shares in return or taken as a director in the company, which means that company has taken it as an unsecured loan. Entire 50 lakhs has been utilised for business purposes.
A company can take loans from directors, relative of directors and their relatives but not from third party.
Now, what should be done to safeguard the interest of the client? Its easier for a CA to qualify his report and move on. But I want to know is there any way we can help the client.
CAclubindia
