Suppose paid up Share capital of a company is Rs. 1,00,000 and no free reserves,
Scenario I
A shareholder who is also a director of the company gives unsecured loan of Rs. 90,000 to Company. Is it necessary to file return with ROC as provided under notification of exemption to Pvt. Ltd. Companies. Also point to be noted that Director can give loan to the Company under rules of Chapter V and it will not be treated as deposit and no need to file Return with ROC.
Scenario II
A shareholder who is also a director (say Mr. X) of the company gives unsecured loan of Rs. 2,00,000 to Company. Can it be done so since it exceeds 100% of Share Capital and free reserves of the Company and will be treated as deposit considering the position of Mr. X. Is it necessary to file return with ROC as provided under notification of exemption to Pvt. Ltd. Companies. Also point to be noted that Director can give loan to the Company under rules of Chapter V and it will not be treated as deposit and no need to file Return with ROC.
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