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loan from directors and relative of directors
can a company accept loan from directors and relative of directors....if yes limit of loan and time period.
Replies (7)
no limit just a declaration from directors that they have not given loan out of borrowed funds and pass a resolution under section 189 read with section 179.
Agreed with @ Kanj Goel
If it is a public company, you have to comply with Sec.180(1)(c) for limit on borrowing. Further, loan from relatives of directors can be taken in case of private company [Ref.Rule 2(1)(c)(viii) of Deposit Rules].
take declaration from directors that they have not given loan out of borrowed funds, pass board resolutions and file MGT-14 of Board resolution as per section 179(3) and if loan amount exceeds paid up capital+free reserves+ security premium account then also pass special resolution and file MGT -14 of special resolution as per section 180 (1) (c) of companies act 2013
Prachi filing of MGT-14 has been exempted please read exemptions to private companies.
yes in case of private company there is no need to pass special resolution hence filing of mgt-14 of special resolution is not applicable but we have to file MGT-14 of board resolution as per section 179(3)
Prachi ji, There is no need to file MGT-14 by private companies for matters listed in sec 179(3)
Kanj ji, why this reference to sec 189? is it a RPT under sec 188(1)? if so which sub clause of sec 188(1) ?
Can you kindly give the draft resolution for this?
Regards,
Geetha
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