I am writing this letter to seek your opinion for the matter stated below.
WE, A PRIVATE LIMITED COMPANY has total expense of 15 Laks for the financial year 2015-2016. THIS AMOUNT WAS FROM ONE OF THE DIRECTOR .WE want to show this amount as loan from director, Mrs 'X'
As per the law
If Company exceeding the Limit of “Paid up share capital + Free Reserves” then process to accept loan from Director
Step-I- Company will Hold a Board Meeting to call General Meeting.
Step-II- Company will pass a Special Resolution for Higher limit.
Step- III- Company will file MGT-14 for Special Resolution passed in General Meeting.
Step-IV- Company will hold Board Meeting and Board of Directors will pass resolution for acceptance of loan from Director.
Step-V- Company will file MGT-14 for Board Resolution.
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My Doubt
We had to do the above mentioned procedure before accepting the loan. But Now the financial year is already over and as per the accounts company has already accepted the loan from the director
What we do now?
Can we do the same procedure now ?
Please Reply
CAclubindia
