A director of a private company has taken loan from bank and passed the complete loan to private company. The main borrowor is the director but company is also shown as co-borrower by the bank. All EMIs have to be paid by Director.
What will be the treatment of such case -
- Is it permitted to do so?
- Can company pay exact EMIs to director and book interest in its books?
Help is appreciated.
Raj
CAclubindia
