Loan yo p ltd company
nitinjain (accountant) (395 Points)
07 May 2023Can a pvt comany received loan from director's Huf???
Please suggest is it ok
CA Rakesh Ishi
(Working at Private Company)
(7775 Points)
Replied 10 May 2023
As per the Companies Act, 2013, a private company can accept loans from its directors, subject to certain conditions. However, there is no provision under the Act that prohibits a private company from accepting loans from the Hindu Undivided Family (HUF) of its director.
It is important to note that the terms and conditions of the loan should be fair and reasonable, and should be approved by the board of directors of the company. The loan should also be documented properly, and the company should disclose the details of the loan in its financial statements.
Chirag
(Professional)
(1979 Points)
Replied 12 June 2023
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