Question ID : 40820

PRIVATE COMPANY ACCEPT LOAN FROM SHAREHOLDERS

Private Limited company can accept loan from Situation 1) Can accept loan from Shareholders? If yes, please provide section 2) Can accept loan from Relative of directors? If yes, please provide section 3) Can accept loan from friends of directors or shareholders? If yes, please provide section 4) Company taken loan from directors but subsequently directors resigned from directorship. Can loan will be treated as deposit?

1) From share holders - Yes- refer MCA notification dated June 5,2015. 2) From relative of Director - Yes- refer Companies (Acceptance of Deposits) Rules, 2014 , rule 2(c)(viii). 3) From friends of Director's or Share holders - Yes - refer section 73(2) (a) to (c) (e) and (f) of Companies Act,2013.