pvt. company loan

For accepting the Loans/Deposits from above parties, a company has to follow the conditions laid down under Sec 180(1)(c) which is If Proposed +Existing borrowings (exclude temporary borrowings) > (paid up capital +Free Reserves), the Company shall have to pass Special Resolution in General Meeting. 2. Deposit Rules: for acceptance of deposits from shareholders and relative of directors: Company can accept maximum 25% of (paid up capital + Free reserves) – This limit is for existing and proposed deposits. Company has to follow the procedure like issuance of circular, depositing insurance, credit rating, appointment of trustee etc. But after Notification G.S.R. 464(E) dated 05/06/15, the company can accept 100% of (Paid up capital+ Free Reserves) without fulfilling the conditions mentioned in sec 73(2) clause (a) to (e) i.e. issuance of circular, depositing insurance, credit rating, appointment of trustee etc. 3. Sec 186: A Company (Private or Public) can’t give loan to any other person or body corporate which is more than 60% of its Paid up Capital + Free Reserves + Security Premium Or 100% of Free Reserve + Security Premium If this limit is exceeded, prior approval by special resolution in general meeting is required. However, in case a loan or guarantee is given by a company to its wholly owned subsidiary company or a joint venture company than special resolution is not required. Read more at: https://www.caclubindia.com/forum/loans-from-director-and-his-relatives-380769.asp