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All QuestionsCategory: Companies Act ComplianceA loan from director relative
Profile photo of Surbhi ManviSurbhi Manvi asked 1 month ago

A loan from director relative

Can the company receive an interest-free loan from the director relative?

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1 Answers
Profile photo of CMA Deepa N. TannaCMA Deepa N. Tanna answered 2 weeks ago

Company can’t accept loan from relatives of the director as per Companies Act, 2013 But as per ‘The Companies (Acceptance of Deposit) second amendment Rules, 2015’ dated 15th September, 2015 G.S.R. 695(E) Private Limited Company can accept loan from the relative of the Director if relative furnish to the company at the time of giving the money, a declaration in writing to the effect that the amount is not being given out of funds acquired by him by borrowing or accepting loans or deposits from others.