Loans to directors

Need answer for below topic: -

1) Am a director in a private limited company. Also own part of the company's shares.

2) Can the company give me loan for repaying my personal loan?

3) If yes, what procedure to be followed and whether company should levy any interest on such loans?

Replies (1)
Assumption:
1. Company is not involved in such financing business in ordinary course.
2. You are WTD.

As per Section 185 of CA2013 loan can be given to Director provided.
1. Such facility is available to all employees; or
2. Pass SR for such scheme.

You will also have to comply with Section 188 of CA2013 (except Sub-section 1)

Please take professional advice before proceeding as contravention of Section 185 can led to imprisonment upto 6 months.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
22 September 2026
Account Assistant

Chirag P Shah & Co. Chartered Accountant

Pune

B.Com

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details