sir,
can a pvt ltd. co. give loan to the whole time director, who holds more than 50% shares of the company.
if yes, then on what interest.
if yes, then up to what extent of the share value.
please guide.
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Loan to director by pvt ltd co.
Replies (2)
Pvt Company can provide loan, provided business of such company is Providing Loan in ordinary course of business
- Rate of Int shall not be less than the prevailing yield Closest to tenure of Government security
- Rate of Int shall not be less than the prevailing yield Closest to tenure of Government security
As per section 185 of The Companies Act 2013,
Yes, a private company can provide loan to its directors subject to compliance with following conditions:-
1. In its share capital no other body corporate has invested any money;
2. It's borrowings from banks or financial institution or any body corporate is less than twice of its paid up share capital or fifty crore rupees whichever is lower.; and
3. It has no default in repayment of such borrowings subsisting at the time of giving such loan.
Yes, a private company can provide loan to its directors subject to compliance with following conditions:-
1. In its share capital no other body corporate has invested any money;
2. It's borrowings from banks or financial institution or any body corporate is less than twice of its paid up share capital or fifty crore rupees whichever is lower.; and
3. It has no default in repayment of such borrowings subsisting at the time of giving such loan.
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