friends, can a pvt ltd co. take loan from relatives & friends of directors & shareholders.....
AMIT AGARWAL (learner) (114 Points)
05 June 2010friends, can a pvt ltd co. take loan from relatives & friends of directors & shareholders.....
CA Shree Jain
(Chartered Accountant)
(1572 Points)
Replied 05 June 2010
Please note that private limited company can take unsecured loan from its shareholders, directors and their relatives and the same would not be covered under section 58A and other deposit provisions as such transaction is exempt by deposit rules 1975.
Shashikala Shah
(Practising C S )
(43 Points)
Replied 05 June 2010
Hello Amit,
In case of Pvt ltd cos., ther is no restriction for loan from Directors, Shareholders and/or their relatives, but it can not take loan from friends of Directors, Shareholders and the same if taken will be treated as deposits.
Shashikala Shah
PCS
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