Private limited company- returning director's loan after his exit
akash
(Querist) 16 November 2012
This query is : Resolved
Hello Experts,
The director of a private limited company wants to exit but the company is not in a position to return the director's loan yet. The director has offered to let the loan remain with the company with a one-sided lock in period of 5 years, where the company can repay earlier if it wants but the director cannot demand it earlier.
1) Does the director, who would be resigning from the board, need to have a token shareholding (say 1 share) in order to give a loan to the company?
2) As its a private limited company, the other directors would not be personally liable for the loan in case the company has to be wound up after losses. Are there any conditions which should be put in the exit contract to specifically mention this point, or is it obvious just by the virtue of being a pvt ltd company?
Sudhir Kumar, Advocate
(Expert) 16 November 2012
if he wants to delay recovery of his loan what is the problem?
in winding up the status of the transaction (whether loan or debenture) will depend.
akash
(Querist) 17 November 2012
It would be a loan to the company, not debenture. Would the remaining directors be personally liable in anyway to return the amount in case the company is not able to sustain?
Sudhir Kumar, Advocate
(Expert) 18 November 2012
in case such transaction is not ultra-virus then they are not personally liable.
Raj Kumar Makkad
(Expert) 23 November 2012
I fully agree with the advice of Sudhir on the subject.
Guest
(Expert) 10 December 2014
Well Attended
Anirudh
(Expert) 10 December 2014
SHAME ON THIS FELLOW TO ATTEND THIS TWO YEAR OLD QUERY.
HE IS TRYING ALL THESE GIMMICS TO HIDE HIS FALSE AND FRADULENT PROFILE.
This fellow cannot even be a last person one can consult for any advice.
This fellow is good for nothing. Many a times he gives advices which are not supported by law.
TAKE THIS FELLOWS FALSITY IN HIS PROFILE. THIS FELLOW ATTACHES MORE IMPORTANCE TO THE PROFILE, WHILE HE IS FILLING UP TOTAL FALSE HOOD IN HIS PROFILE.
please visit the following link:
http://www.lawyersclubindia.com/lawyers_search/N-J-S-Rajkumar-alias-narasimha-254519.asp#.VIcRwmeHPFx
where he claims that he is practising from 2001, while as already indicated by me, he was enrolled only in the year 2012!!! CAN ANYBODY PRACTICE BEFORE ENROLMENT? IF ONE DOES SUCH A PRACTICE IS HE NOT FIT TO BE CALLED A "FRAUD"?
N.J.S.Rajkumar alias narasimha's Details
Listed Under
Business Law
Civil Law
Criminal Law
Practicing Since
2001
Specialization
SEBI and SEBI RELATED CASES
Court
Others
Address
54,PARASURAMA EASWARAN KOIL WEST MADA STREET,AYANAVARAM,CHENNAI 600023
Other Details
rajkumar_wins@rediffmail.com 9444036927
Therefore, before taking advice, the querist should be too careful
