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Loan to director

529 views 6 replies

Respected All

Urgent clearification require 

Can a private limited company given loan to its director under companies act 2013 ? Director is a shreholder of the company. 

Thanks & with best regards

 

Replies (6)

cannot be given its prohibited

not allowed
As per sec 185 it is prohibited .but there is exemption notification issued recently if pvt co fullfill certain criteria it can give Loan to director.
As per sec 185 it is prohibited .but there is exemption notification issued recently if pvt co fullfill certain criteria it can give Loan to director.

yes if a pvt co fulfills all the criteria then sec 185 will not apply

i. in whose dshare capital no other boady corporate has invested any money

ii. whose o/s borrowing does not exceed twice of paid up share capital or 50cr whichever is lower and 

iii. such co has not made default in repayment of borrowings

Nice informations..


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