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Loan from shareholder
Is in company law 2014 India can pvt lttd co acceptence of loan from shareholders is allowed?
Replies (3)
No, under new Companies Act 2013 it is now allowed except in following situations:
a) If the shareholder is also a director and he gives a declaration that the loan is not being given out of borrowed funds; or
b) the loan is part of promoters' contribution as stipulated by Bank in sanction letter.
Agreed. Still pvt can take loan from shareholder it will be treated as public deposit and compliances in this respect has to be done
Yes, agreed. But conditions prescribed are very stringent and not practical to be followed by private companies.
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