Loan from Shareholders

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Hi Team,

Can u please clarify me on acceptance of loan from the shareholders under which section of Companies act , the threshold limit for the same.

Thanks in advance .
Fazil Wahab K
Replies (1)
sec 180 of Companies Act imposes restrictions of borrowing, where the money to be borrowed, together with the money already borrowed by the company will exceed aggregate of its paid-up share capital and free reserves and securities premium , apart from temporary loans obtained from the company’s bankers in the ordinary course of business,then the Board of Directors of a company shall exercise the following powers only with the consent of the company by a special resolution..


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