Unsecured loan from directors in a private company

Hanoudi (Article Assistand) (21 Points)

07 June 2019  

    Is there a limit to the unsecured loans that can be raised from directors in a private company? This loan is the sole financing of the company. These directors are not shown as shares of shareholders as the owner of the company wants to retain holding with minimal contribution towards it

Paid up capital is 200000 with the owner having 80% shares.

Finance is raised from outside investors in the form of unsecured loans from directors Rs. 2 crore