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LOAN TO COMPANY BY DIRECTOR'S COLLATERAL

Pvt ltd 1430 views 8 replies

Miss Mansi Bhojani

Practicing Chartered Accountant

1736 Points Joined August 2012

Date : 25.02.2020

Sir/ Madam,

I had a query regarding corporate law.

I needed a confirmation where can a director give his or her personal fixed deposits as collateral security in bank to get loan from the bank in the name of private limited company or are there any prohibitions ?

Thanks in advance.

Replies (8)

Eswar Reddy S

CFO- at NHTF

58275 Points Joined August 2012

Yes.Director can give guarantee at his own risk.If company goes for insolvency then he may have loose his fixed deposits to the extent of guarantee..

There is no prohibition to give guarantee.For giving guarantee director can charge comission as well

SOHAN LAL

Manger Accounts & Finance

363 Points Joined October 2012

Yes, afcause

RAJA P M

"Do the Right Thing...!!!"

128111 Points Joined January 2015

Yes... I agreed to above said reply...

@ Miss Mansi Bhojani.,

Yes... Director can give his personal assets as collateral to bank for taken Loan from bank by company...

Also any other parties can be given as the same...

Miss Mansi Bhojani

Practicing Chartered Accountant

1736 Points Joined August 2012

Thanks you to everyone for your reply.

RAJA P M

"Do the Right Thing...!!!"

128111 Points Joined January 2015

After a Long time I seen you in CCI...

Happy to Enjoy Your Profession...

GOD BLESS YOU...

Miss Mansi Bhojani

Practicing Chartered Accountant

1736 Points Joined August 2012

Yes sir. I try to give my contribution regularly but work disparity affects it due to the current scenario of due dates. Will try to give my contribution.
Thanks sir for your motivation and prompt response.
Also thanks a lot sir for your wishes.