Get Mobile Updates on Recent Tax Changes. Go CAclubindia PRO. Subscribe Now!

Loan from directors by pvt. ltd. company

Co Act 2013 1859 views 1 replies

Niraj

Company Secretary

26 Points Joined May 2010

Dear Friends,

If Board resolution passed regarding loan from directors by the company as on 30.03.2014, can we take the advantage of MCA circular no. 32/2004 dt. 23.03.2014 regarding transitional period for resolution, up to 29.03.2015. Thereafter, company again wants to take the loan from directors, Is there any requirements to file form MGT- with ROC. Kindly Suggest ASAP.

Replies (1)

CS Rahul Kabra

141 Points Joined May 2015

Hello Niraj,

Yes you can take advantage of Circular No. 32/2014 regarding transitional period for resolutions passed under Companies Act, 1956. Subject to condition that implementation of the resolution has commenced before 1st April, 2014. I presume you have filed MGT-14 with the ROC for this resolution.

Under Companies Act, 2013 a Company can take Loan/Deposit from its Directors. However the power to borrow has been conferred to Board of Directors under Section 179 (3) (d) of Companies Act, 2013. According to Section 117 of the Companies Act,2013, a Company is required to file Resolutions Passed by its Board of Directos under Section 179 of Companies Act, 2013. Thus a Company has to file Board Resolution for obtaining Loan from its Directors in Form MGT-14, within 30 days of passing the resolution.

Thanks & regards,

CS Rahul Kabra