As per Section 184 A Company cannot give any loan to Directors.
But my question is Can a Director or Shareholder give Loan to Private Limited Company??
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New companies act, 2013
Replies (5)
Director : Yes, if he gives a declaration that the amount is not being given out of borrowed funds.
Shareholder: Theoritically, yes - subject to compliance of Sec.73(2). However, these conditions are not practical and hence practically - No.
Dear Hitesh Ji,
A company can accept loan from a Director.
A company can't accept loan from a Shareholder.
For further clarity read Companies (Acceptance of Deposits) Rules, 2014 and section 180 of the Companies Act, 2013.
A Director can give loan to a company provided it is not out of the monies borrowed.
A shareholder cannot give loan to a Company
Refer: Companies(Acceptance of Deposits) Rules, 2014
Agree with above suggestions....
Director To Comany = Yes, but restricted to own fund
Company To Director = No
Shareholder To Company = No
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