Loan from director

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512 Points Posted on 19 November 2020
can a director advace a loan to company by taking it from outside parties
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On 19 November 2020 at 23:42 Report
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This discussion explores whether a director can provide a loan to their company by first obtaining funds from outside parties. While directors can lend to their company, there are restrictions on taking loans from related parties. Specifically, Rule 2(1)(c)(viii) of the Companies (Acceptance of Deposit) Rules 2014 is cited, indicating that loans sourced from borrowed funds may be considered a deposit and are therefore prohibited.

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Accountant
3662 Points Posted on 20 November 2020
Yes.....
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On 20 November 2020 at 00:52
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non
126 Points Posted on 20 November 2020
Director can only give loan to the company but a can not taken the loan from related parties.
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On 20 November 2020 at 09:49
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512 Points Posted on 20 November 2020
Kindly quote the relevant section
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On 20 November 2020 at 11:19
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Partner
1072 Points Posted on 21 November 2020
Pl see rule 2(1)(c)(viii) of Companies (Acceptance of deposit) Rules 2014.
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On 21 November 2020 at 17:14
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Professional
1979 Points Posted on 27 November 2020
No, From Borrowed Fund ,Director Can't do because it will fall under deposit.
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On 27 November 2020 at 17:25

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