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??
Hitesh Salecha (Owner) (24 Points)
15 May 2014As 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??
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8224 Points)
Replied 15 May 2014
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.
CA Nimesh Maheshwari
(Commercial Manager)
(334 Points)
Replied 15 May 2014
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.
mWazz
(CA-Final)
(473 Points)
Replied 15 May 2014
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
Vandana J Doshi
(Practising Company Secretary)
(12562 Points)
Replied 17 May 2014
Agree with above suggestions....
CA PRIYUL SHAH
(JOB)
(901 Points)
Replied 17 May 2014
Director To Comany = Yes, but restricted to own fund
Company To Director = No
Shareholder To Company = No