Unsecured loan from Director of private company

Can a Private company accept loan from directors? if yes under which provisions of the Companies Act 1956. If the same fact is reflected in the signed balance sheet and shown under unsecured loans in Annual return, does such annula return is an incorrect Annual return.

Yes the private limited co can accept unsecured loan from Directors u/s 3(1)(iii) of the companies act.

There are no limits as to how much amount a company can accept from directors in the nature of unsecured loans. Further, in Annual Return, we need to specify the secured loans (incl. interest outstanding) and not unsecured loans as on the date of AGM.

Private Company can accepts the loan from the Directors, Relatives & Freinds.

There is no bar on that.

The only bar is that private Company can not Invite the public to give deposits.

If the company has taken the loan from the Directors. Then , It is not wrong to show the loan amount, Whether it is Balance sheet or any other documents.

Ankur Shah (Practicing Company Secretary)

“Guru Gautam” Bungalow, Inside Parshwa Tower,

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Satellite, Ahmedabad – 15

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Can Pvt Ltd company pay the loan to directors, if yes what are the consequnces.

Ravindra

you have said

private limited co can accept unsecured loan from Directors u/s 3(1)(iii) of the companies act.       

 my query is can a private co accept SECURED loan from directors,shareholders or their relatives?

please reply

pvt ltd can't  accept secured loan from directors/shareholders

why?? can u please state the relevant section ?

DEAR SIR,

CAN U TELL ME HOW TO CALCULATED INTEREST ON UNSECURED LOAN 

IF ....

OPENING BALANCE ------01/04/2009--------262753.75  CR.

                                      -------30/06/2009-------125000.00   DR.

                                      -------07/07/2009-------1175000.00  CR.

CLOSING BALANCE IS ----31/03/2010-------1312753.75  CR.

 WHAT IS INTEREST @ 10% PLS.HELP ME.....

hello sir

I want to know whether a corporate assessee can take a unsecured loan from a sister concern and whether it can be in the form of cash and what are the provisions applicable to such unsecured cash loan
and if such loan is routed through bank what happened

Dear Sir,

There is a one client who has one proprietorship firm and the same person is a director in one private limited company formed by him. Now if he wants to transfer all his Fixed assets of proprietorship to private limited as unsecured loan from directors. Can he do so? if yes than at what amount of transfer? what is the tax effect of it? Pls mention the section of it.