Loan from shareholder being company having a common director

Pvt ltd 201 views 1 replies

Dear Experts kindly help me out of the below mentioned query.

One Private Limited Company (Say A) is having a shareholder being a NBFC Pvt Ltd Company (Say B). A and B is also having a common director (Say C). C is having shareholding in A which is less than 20% but in B greater than 20%. Now my query is whether A can take loan from B and Vice Versa?

Thanks in advance.

Replies (1)
yes private co. can take loan from it's members subject to limit as specified i.e. 100 % of share capital and free reserve ...further this rule also not apply on NBFC..they can lend as much amount as they want because it's their business


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