Loan from Director

This discussion clarifies the rules surrounding loans taken by a private limited company from a director. It's permissible for a company to accept loans from a director or their relative, provided the funds originate from their own resources and not from another loan. A declaration to this effect is required. The key point is that the loan must be taken while the individual is still a director; accepting a loan after they have ceased to be a director or shareholder may lead to non-compliance.