Loan to director of a pvt ltd company

Can a director of a Private Limited Company take loan from the company in which he is holding 90 % stake ?
Replies (4)

Yes, He can if the Lending company satisfies all the 3 conditions:

1. No body corporate has invested in his share.

2. Borrowing from PFI is not greater than twice of its paid up capital.

3. Company does not made any default in repayment of such borrowing.

Many thanks Vivek... The company satisfies all the above conditions. Please help me with one more query if the same director can sell his patent rigts to the same company in place of taking a loan from the company. Is it legal ?

yes its legal but check the provision of the act whereever applicable.

COULD ANY LEARNED CS CLARIFY WHETHER ADT 1 IS REQUIRED TO BE FILED FOR APPT OF FIRST AUDITOR OF A PRIVATE LTD CO.,

 

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