Loan from Director

company has taken a loan from person when he was a director but he is not a shareholder.
but during the financial year 19-20 he is not a director and not a shareholder, whether there is any non compliance.
Replies (4)
Quick Summary
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.

A private limited company can accept loan from its director or relative of director from their own funds only.
Director & relative has to furnish a declaration to the company that loan is being provided from own funds & without taking loan from other.

So, if it's taken when he was Director, than it's ok..but now you can not take.

Thank you for your response

Most welcome.......
A private company can take loan from its Directors?

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