Loan By Company

Loan to director is governed by section 295. But the same section is not applicable to a purely private company. So you may go ahead. However recording of the same transaction in board minutes is necessary. As dir is interested so disclosure of interest from dir u/s 299 is required. Further he can not vote u/s 300.

Agree with the above view. However, Deemed dividend : Sec 2(22)(e) of the Income Tax Act, could be attracted in case the Director holds more than 10% voting right in the Company and the transaction satisfies other conditions given in the section.

Originally posted by : HARDIK
	As per my interpretation In case of purely private company interested director can participate in discussion and vote as per section 300(2).

Agree with the learned member.