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Repayment of loan by director

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229 Points Posted on 11 October 2022
A company had taken a loan from an entity and the same is repaid by it's director.
Whether this is allowed under Companies Act,2013 ? Or is it a violation of the Act?
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On 11 October 2022 at 15:21 Report
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Student
1628 Points Posted on 12 October 2022
According to me there is no violation of law. if a director can pay for other expenses on behalf of co they can also repay the loan as well... for more clarity you can google and consult a professional
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On 12 October 2022 at 16:34
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Professional
1979 Points Posted on 17 October 2022
Yes , a company can take a Loan from director and repay it to lending entity ,but you have to ensure that there is no violation of deposit rules as well no round tripping involved !
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On 17 October 2022 at 17:49
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3 Points Posted on 17 October 2022
There is no violation of the Act, the loan is now a loan from Director to the company, The company needs to repay that loan to the director.
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On 17 October 2022 at 22:04


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