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?
3 Replies
Radhey Shyam Jha
(Student)
(1621 Points)
Replied 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
Chirag
(Professional)
(1979 Points)
Replied 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 !
Achyutha hegade
(3 Points)
Replied 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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