How much loan can be taken by a Pvt Ltd company from its Directors

By | July 24, 2015

Query: I would like to know that How much loan can be taken by a Pvt Ltd company from its Directors and what are the legal requirements to be fulfilled by the company in this respect ?.

Answer: As per Section 180(1)(c) of the Companies Act 2013, Companies are required to pass Special resolution in the general meeting of the company if the money to be borrowed, together with the money already borrowed exceed the aggregate of its Paid up capital and free reserves apart from temporary loans obtained from the company’s bankers in the ordinary course of business.

Thus it could be interpreted that directors can lend that much amount to the company upto which they have passed special resolution in the General meeting of company.

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