pledge of shares by promoter

[Sriram K]

Dear All,

if an individual promoter shareholders not a director in X pvt Ltd and pledges his shares for the purpose of loan to be availed by X pvt Ltd.

Is there any restriction in CA - 2013. Sec.185 is not applicable since he is not a director.

Any other provisions will come to play ? 

Regards

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Regards,
Sriram K Sarma

[srikanthreddykolli .]

chapter V- Acceptance of Deposit Rules

Rule 2 -

(c) “deposit” includes any receipt of money by way of deposit or loan or in any other form, by a company, but does not include

(xiii) any amount brought in by the promoters of the company by way of unsecured loan in pursuance of the

stipulation of any lending financial institution or a bank subject to fulfillment of the following conditions, namely:-

(a) the loan is brought in pursuance of the stipulation imposed by the lending institutions on the promoters to contribute such finance;

(b) the loan is provided by the promoters themselves or by their relatives or by both; and

(c) the exemption under this sub-clause shall be available only till the loans of financial institution or bank are repaid and not thereafter;

the above provision may apply indirectly, but exempted on fulfilling the above criteria

With Regards

Srikanth Reddy Kolli

Company Secretary

+91 9618144661

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