COMPANIES LAW LOANS BY A COMPANY
Can a Company take loan from share holders, out siders ? What are the provisions for these kind of loans in companies act. Any approvals to be taken.
A Pvt. Company company can take loan/deposit from it shareholders upto 100% of its networth.
It can take loan from relative of a director provided that relative has confirmed in writting that he has not acquired fund from other borrowings.