Does unsecured Loan taken by Public Listed Co. from its Promoters will be included in Sec 58A (Depoits) of Company Act.
& if a co. had already taken unsxecured loan, whether it has defaulted as per co. law ?
its impact & consequenses
Thanks in Advance
No.
The unsecured Loan taken by Public Listed Co. from its Promoters not to be included in Sec 58A (Deposit) of Company Act by virtue of clause 2(b)(xi) of the Companies (Acceptance of Deposits) Rules, 1975.
Please find below the relevant extracts of clause 2(b)(xi) of the Companies (Acceptance of Deposits) Rules, 1975. :
(xi) any amount brought in by the promoters by way of unsecured loans in pursuance of stipulations of financial institutions subject to the fulfillment of the following conditions, namely:—
(a) the loans are brought in pursuance of the stipulation imposed by the financial institutions in fulfillment of the obligation of the promoters to contribute such finance;
(b) the loans are provided by the promoters themselves and/or by their relatives, and not from their friends and business associates; and
(c) the exemption under this sub-clause shall be available only till the loans of financial institutions are repaid and not thereafter.
Regards
CAclubindia
