Urgent please

No Pankaj, You can only use that money as per the condition and area given in section 78.

can public ltd co. take loan from promoters ? I think yes bu let me know under which section co. can take loan…

and second query we can not use security premium amount for working capital can we use prefential equity

amount for working capital?

STILL NOT REPLY...

Dear Pankaj,

1. Yes, public ltd co. can take loan from DIRECTORS of company. It is not covered under Deposits u/s 58A. Acceptace of loan from director is covered under exceptions in Acceptance of Deposit Rules.

2. Yes, you can use prefential equity amount for working capital, there is no restriction whatsoever.

Thanks

thanks neha.. One more query in our another pvt. Ltd. Co. we want to convert loan taken from directors into

equity.. We will convert loan into equity @ premium but as per section 78 security premium amount should be

deposited in separate account so I want to how will it possible since we have already taken loan from directors

how will we could keep it in security premium a/c?

Originally posted by : Pankaj Arora
	security premium can be used for issuing bonus shares, partly paid up shares into fully paid shares and so one... so

As per section 78(2), sec prem can not be used for making partly paid up shares into fully paid shares.

Pls read section 78 (2) carefully.

As far as your query is concerned, Pass following entry at the time of conversion of loan amount into equity :

LOAN A/C DR.                               1.00 CRORE

TO SHARE CAPITAL A/C                                          10.00 LACS

TO SECURITIES PREMIUM A/C                                90.00 LACS

Pls post if you have any other query regading this.

Thanks

There is no section in companies act that says security premium should been deposited in separate account so that we could use it for specific purpose given in section 78. Only journal entry is to be passed for transferring it in SECURITIES PREMIUM ledger account.

Thanks

Dear Pankaj,

Yes you can issue shares to promoter group at premium on preferential basis for this you need to pass special resoltion and give the justificaiton of amount and comply with the Unlisted Public Companies Preferential Issue guidelines.

You can take deposits from directors and their relatives as well, however deposits from directors will be considered as exempted deposits.

PFA as desired.

First file was amendment 2011 guidelines and this one is original 2003 guidelines