Dear All,
Happy Afternoon !
Can anyone let me know if a company can accept loan from its directors or members?
If yes, then please give some reference or any other required details.
Thanks.
Menu
Loan from directors | companies act 2013
Replies (2)
Loan from directors: Yes, within the limits specified in Sec.180(1)(c). It will not be 'deposit' if the director gives undertaking that it is not provided out of borrowed funds. Otherwise provisions relating to public deposit will apply.
Loan from shareholder: Yes, within the limits specified in Sec.180(1)(c) read with Sec.73(2) & Rules framed thereunder which provide for conditions which are not practical and hence companies will tend to avoid.
Resolution for borrowing can be passed only in a Board meeting (and not by circulation) and MGT.14 needs to be filed.
Noted with thanks Sir.
Recent Threads
- Rcm payable which head
- Query of GST
- Long Term Capitalgains on sale of residential prop
- How Salaried Individuals Can Reduce Capital Gains
- NSTPI registration
- GST PAID IN DELHI
- How to Trade Forex in India?
- TDS - requirement of TDS by individual under presu
- Normal Register in GST in delhi in gujarat no rece
- ITC availment relationship
Related Threads
CAclubindia
