Loan to director in pvt limited company

Is pvt ltd company give loan to its director or its relative or managing director or part time directors? IF not ,what is the procedure to correct the mistake if given by company? or if salary paid above its payable in year end then what ca i do ?
Replies (4)

Arora,

The private companies can give loans to directors, if following conditions are complied;

1. in whose share capital no other body corporate has invested any money.

2. if borrowing of such a company from banks or financial institution or any body corporate is less than twice of its paid up capital or 50 crores rupees whichever is lower and 

3 Such a company has no defaults in repayment of such borrowings subsisting .

thanks Prakash

but as per which section

Arora,

It is as per section 185 of the CA, 2013, but you may not find same in respective section right now, since it is inserted by MCA Notification dated 5.06.2015, exemption to private limited company.

Enclosed notification for your reference, see point 14.

thanku so much prakash ji

 

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