Hi CCI member,
Please advise me whether a Pvt. company can take unsecured loan from director, shareholders, related companies, and relatives of director after the implimentation on new co. act 2013 and what are the compliance procedure in this regard.. Please advise.
Thank You.
A Pvt. company cannot take unsecured loan from director, shareholders, related companies, and relatives of director after the implementation of new co. act 2013.
Directors - YES (It is not a 'deposit')
Shareholders - YES [But only after compliance of Sec.73(2) which is not practical in all cases]
Companies - YES [It is not a 'deposit'. But lending company has to check compliance of Sec.185]
Relatives of directors - NO (If they are not directors or it is not treated as promoters contribution as per Bank's stipulation)
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