Can a company take loan from its Director. If so what are the requirement that need to be fulfilled.
Thanks in Advance
Piyush Jain (CA) (283 Points)
04 May 2010Can a company take loan from its Director. If so what are the requirement that need to be fulfilled.
Thanks in Advance
CS Jithesh (ACS,)
(COMPANY SECRETARY )
(485 Points)
Replied 04 May 2010
Offcourse, the company can take loans from its directors. First the same has to be approved by the board meeting and an agreement can be prepared regarding the terms and condition of such loans.
Regards
CS Jithesh
preeti
(asst.cs)
(34 Points)
Replied 05 May 2010
Agreed with Jitesh, a company can take loan from its directors and it will not be considered as deposits u/s 58A .It will attract Sec 299 so the required disclosure is to made for
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