Jayanta Bandyopadhyay 16 September 2024
After recent amendment. PVT LTD CO can not take loan from shareholders and promoter.
In this case, there are only 2 shareholders and 2 directors. Major holds 99.98%, while spouse holds 0.02%.
Major shareholder cum director has given loan to company without any declaration about it's sourcing. Interest free and callable loan.
My query is that as loan was given in capacity of shareholder[ then he was not a director]? Should he take back loan and give loan afresh as Director.
Please advise.
kavksatyanarayana (subregistrar/supdt.(retired)) 16 September 2024
As he was not a director when giving the loan, it may be deemed that he was given it in his capacity. Now he can recover it from the borrower and as a director, if he is authorised for it, he can give a fresh loan.
T. Kalaiselvan, Advocate (Advocate) 16 September 2024
The loan amount can be recovered and regulrised to avoid any legal consequences.
After that he can grant loan in the capacity of director as per law.
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