Loans taken or given from company

353 views 1 replies

sir/ madam 

my query is :-

whether the company can give or take loan and advances from its 

directors , shareholders

others--- individual and non individual?

 

and what are the cases under which the company can give or take loans and advances.?

 

Replies (1)
Hi, to answer your questions, A co. cannot give loan to its directors--prohibited u/s 185........ As for giving loans to others, if they fall under the categories mentioned in sec 185, it will be prohibited...if not sec 186 will apply.... As for accepting loans-from directors--it is possible but have to obtain a cert from them for the same, otherwise it will fall under deposits.........refer deposit rules From members, it will be treated as deposits and can be obtained after following the requisite formalities. From non -individual, sec 180 is to be followed...... Hopefully it is clear.....

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