Can the Director of a company give loan to comapny as per new Companies Act 2013? - Professionals - Legal - TIK Share
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Can the Director of a company give loan to comapny as per new Companies Act 2013?


Rahul Rai

2014-05-05

Can the directors in a company give loan to a private limited company as per companies act 2013?

What are the conditions and rules to be satisfied to give loan to company by directors?

Is there any monetary limit on amount of loan that can be given by directors to company?

CA Pulkit Sharma

2014-05-05

As per new companies act, company can not receive deposits from any party other than directors (subjected to some conditions).

The condition is that Company should receive a affidivit from director that the loan given to company is not borrowed fund.

After giving the affidivit to company directors can give loan to company.

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