Can a company(company limited by shares) take loan from its shareholder? if yes then, is there any complaince?
same query in case if loan take from nbfc ?
pls reply fast. thanks in advance.
As per the provisions of the Companies Act 2013, the private Company which is the start up can take any amount from the shareholders from five years from date of incorporation.
Secondally for the other private companies - can take any amount from the shareholders if the following conditions are satisfied:
No other body corporate has invested the money in that Company. Means the Company shall not have any associate or subsidiary Company.
Borrowing from banks or financial institutions shall not exceed twice the share capital or 50 crore whichever is less.
Company has not defaulted in repayment of money from banks or financial institution at the time of accepting money.
If the Company is not falling under both the criteria then Company can accept any amount from banks and financial institutions upto 100% of the paid up share capital, free reserves and securities premium. Even if Company give in excess of such prescribed limit, then the provisions of deposit shall apply.
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