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Loan from directors
a private limited company has authorized and paid up capital of rs 100000 each. now the 3 directors passed a board resolution to give loan to the company. the 3 directors are the only members of the company. now my question is since the amount of loan exceeds the paid up share capital is it necessary to pass a specail resolution also, and if yes mgt 14 has to be filled for both the resolution or a pvt company is exempt from filing mgt 14
Replies (4)
pvt company is exempted from filing MGT 14
thank you sir, but please let me knw that whether special resolution is also not required to be filled.
Pvt company has to file special resolution and not file board resolution
Sec 180 which covers borrowings, is exempt to a private company. So there is no requirement of special resolution & mgt-14.
The company has to pass only a board resolution for availing loan from directors.
Further, loan from directors is also exempted from definition of Deposit provided under the Deposit rules, provided that the director should furnish a declaration to the company that the amount is lent from his own funds and not been borrowed by him.
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