Repayment of loan from director...help pls

pass a simple board resolution mention amount being repaid

Hi,

As per my understanding there is no need to pass any specific resolution for repayment of Loan to director. In this case director should be treated as simple creditor of the company who have been paid off.

However if you want a noting in the board minutes, you may go ahead though it is not required.

Best Regards

Agree with ankur sir no need but if you want you can note simply for that purpose

Thank U Mr. Rajeev ...but is there any differrence as to the procedures to be followed for the repayment of loan taken from the Director of the company and as to the repayment  of loan taken by the company from an outsider.. Is there no seperate procedure as such to be followed for the repayment of loan taken from the director..

Pls Guide

Okay. Thank you Mr. Ankur and Mr. Rajeev :)

Originally posted by : Suraag Nair
	Thank U Mr. Rajeev ...but is there any differrence as to the procedures to be followed for the repayment of loan taken from the Director of the company and as to the repayment  of loan taken by the company from an outsider.. Is there no seperate procedure as such to be followed for the repayment of loan taken from the director.. Pls Guide

No there is no dirrerence in procedure.

No need to note in minutes as well. It will be just overburdening a minutes book with no business as such.

A company have to pass resolution for repayment of directors.  Some certain points needs to be noted

1. Directors would give in writing that such money is not given as  deposit....means he will specify that it's a loan.
2. The interst on such loan amount will also be subject to TDS from Interest.
3. The company will treat the loan first for the purpose it was taken.
4. In case company goes winding up ...then it  will  treated that  such loan is considered as unsecured loan.
    

n yes 1 thing more .......

resolution n minutes are obligations of the company ... and  it should be recorded in meetings as well.

as it's a material transaction.

In short .....

company is not  a sole proprietor " Jo dil kiya to chalega record karo nahi to nahi karo"

Otherwise the income tax officer section 68 charge karega ...

for unexplained credit and investments ,cash

Thank U Ms. Neha ...Thank U Ms. Renu

@ Renu... Maam ...I think that the procedures listed down by u are things to be noted by the Company while receiving loan from the director... Please correct me if am wrong :) Thank U. My query was regarding steps needed to be followed by the company during the Repayment of loan taken by the company from the Director

Regards

Yes i have described about loan from directors.

Originally posted by : Neha Jain
	No need to note in minutes as well. It will be just overburdening a minutes book with no business as such.

Totally agree with your observation…

Sir 68 kyu charge ni hoga ....ye explain kr do ...

ye sidhe sidhe law me likha hua h ....

Originally posted by : *RENU SINGH *
	Sir 68 kyu charge ni hoga ....ye explain kr do ... ye sidhe sidhe law me likha hua h ....

Totally stand by the query u raised