Loans from directors & others by private company

Dear Sir My Query is one of the Private Company taken loan from Directors & Other persons and Company Net-worth is negative of -16,00,000 and taken loan amounting to 56,00,000 it allowable to company accept loan as so.. please clarify me...
Replies (6)

Yes it is allowable but director has to give a declaration in writing that the fund given by him is not borrowed fund.

If Companies Net worth is Negative and Company is taking loan then as per Section 180(1)(c) pass a Special Resolution before accepting of Loan.

thax..

 

Hi

Please see Section 180 (link below) is not applicable on Private Companies. Please cross -check

https://www.dokmart.com/companies-act/sections

thanks & regards

sunil 

 

 

Loan taken from Directors - Declaration from director 

Loan taken from others - Company have to follow all the procedures of the companies act 2013

If the company is a private limited company, it may accept the laon from directors or their relatives as per exemption provided by the MCA. However, teh company need to check whether the person from whom loan is being taken come under the ambit of definition of "Relative" or not.

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