shareholder loan

There is nothing that prevents a share holder from lending to the company. Same person can hold Shares as well as Debentures. Refer to the famous Solomon Vs. Solomon and company limited caselaw.

hi ,

i have recently incorporated a Privated Limited company. My question is can a private limited company take a loan from a director or share holder internally rather than from banks.  Please advise if there are any obligations in this regard...

thanks ..

uday

Yes, but at the time of availing  such loan get a letter from such director or shareholder that the money was not borrowed by them for the purpose of lending it to the Company.

Otherwise, it will be treated as Deposits. Even though a private company can take deposits from Directors and Shareholders, in such a case, you will have to comply with Companies (Acceptance of Deposit) Rules.