SAVE BIG: 30% OFF on CAclubindia PRO for Group of 3+ Team Members Subscribe Now!

Loan from relative by Private Company

Aanshi Jain (41 Points)

01 July 2020

Can a private company take loan from its relatives?
if yes under what conditions?

Reply
Follow
Share

4 Replies

Priyanka Jhanwar (140 Points)
Replied 01 July 2020

A private company can take loan from directors and relatives of director. Provided a declaration is given by director and relative of directors as the case may be.

Upgrade to CAclubindia Pro. Subscribe Now!

Aanshi Jain (41 Points)
Replied 01 July 2020

Please quote the section

Priyanka Jhanwar (140 Points)
Replied 01 July 2020

Unsecured loan accepted by private company from directors/ relative of directors are covered under the EXEMPTED DEPOSITS under rule 2 of companies (Acceptance of Deposit) Rules, 2014.

1 Like