unsecured loan

[sudhanshu sharma]

dear all,

           plz clarify that if any Private Company taken money from party(firm) or person who is neither shareholders and nor the

           Director or relative thereof ,whether in this type of transaction can we call private company taken "unsecured loan" 

           further in this regard what are legal formalities and law,rules or regulation ,approvals are required.  

 

          your response and suggestion are most welcome.

 

 

Regard's

 Sudhanshu Sharma

 9990497913,

 9250980166,

 ssde...@gmail.com

[Pracheta]

I dont think the Private Company is allowed to borrow such money. Generally such loan taken will fall under the definition of 'Deposits' and Private companies cant take deposits from outsiders.

Other views are solicited.

Regards,
Pracheta

--
Find eNewsletters of ICSI Mysore at: http://www.icsi.edu/NewsEvents/enewsletters/tabid/1757/Default.aspx AND www.esnips.com/web/icsimysore
 
You received this message as you are subscriber. To unsubscribe email to: csmysore-u...@googlegroups.com

[Rashmi M R]

 

I agree with the views of Ms. Pracheta. 

 

Pvt. Companies cannot borrow money from persons who are not members, directors or relatives of directors.

 

Please refer Rule 2(b) of the Companies (Acceptance of Deposits) Rules, 1975 attached.

 

 

Regards,

Rashmi

[CS Prabhu Ram]

A loan is different from Deposit. Yes a Pvt Company cannot accept
deposits. But there is no bar to a get a loan from third party without
any collateral, which is called unsecured loan.

On Oct 27, 2:25 pm, Rashmi M R <rashmi...@gmail.com> wrote:
> I agree with the views of Ms. Pracheta.
>
> Pvt. Companies cannot borrow money from persons who are not members,
> directors or relatives of directors.
>
> Please refer Rule 2(b) of the Companies (Acceptance of Deposits) Rules, 1975
> attached.
>
> Regards,
> Rashmi
>
>
>
>
>
>
>
> On Wed, Oct 27, 2010 at 2:21 PM, Pracheta <m.prach...@gmail.com> wrote:
> > I dont think the Private Company is allowed to borrow such money. Generally
> > such loan taken will fall under the definition of 'Deposits' and Private
> > companies cant take deposits from outsiders.
>
> > Other views are solicited.
>
> > Regards,
> > Pracheta
>

> > On Wed, Oct 27, 2010 at 11:23 AM, sudhanshu sharma <ssden...@gmail.com>wrote:
>
> >> dear all,
> >>            plz clarify that if any Private Company taken money from
> >> party(firm) or person who is neither shareholders and nor the
> >>            Director or relative thereof ,whether in this type of
> >> transaction can we call private company taken "unsecured loan"
> >>            further in this regard what are legal formalities and law,rules
> >> or regulation ,approvals are required.
>
> >>           your response and suggestion are most welcome.
>
> >> Regard's
> >>  Sudhanshu Sharma
> >>  9990497913,
> >>  9250980166,

> >>  ssden...@gmail.com

>
> >> --
> >> Find eNewsletters of ICSI Mysore at:
> >>http://www.icsi.edu/NewsEvents/enewsletters/tabid/1757/Default.aspxAND
> >>www.esnips.com/web/icsimysore
>
> >> You received this message as you are subscriber. To unsubscribe email to:
> >> csmysore-u...@googlegroups.com
>
> > --
> > Find eNewsletters of ICSI Mysore at:
> >http://www.icsi.edu/NewsEvents/enewsletters/tabid/1757/Default.aspxAND
> >www.esnips.com/web/icsimysore
>
> > You received this message as you are subscriber. To unsubscribe email to:
> > csmysore-u...@googlegroups.com
>
>
>

>  Acceptance of Deposit Rules.pdf
> 118KViewDownload

[Durga Prasad]

Dear all,

 

An unsecured loan from an individual (not being director or member and such loan is not out of borrowed funds) is deemed to be a deposit. Only inter corporate loans are exempted deposits.

 

Hence if any amount is borrowed from an individual being a third party, such unsecured loans will be considered as deposits. Ms. Pracheta & Rashmi M R  are right.

 

Thanks & regards

 

DURGA PRASAD

DGM (Legal) & COMPANY SECRETARY
PEARL DISTILLERY LTD

 

 

 

 

--
Find eNewsletters of ICSI Mysore at: http://www.icsi.edu/NewsEvents/enewsletters/tabid/1757/Default.aspx  AND www.esnips.com/web/icsimysore

[Usha Ganapathy Subramanian]

Dear all,

I agree with the previous mails. A private company cannot accept deposits except from director, their relatives and members. In this case, it's a loan from a firm - this is deemed as a deposit only. Hence, such a borrowing is not at all permissible. 

Please immediately take steps to repay the money and never show it in the annual filing with RoC. They definitely look into such deposits and undertake inspection.

Regards,

Usha G

[Astarag]

I think you can show it as Share application money in your balance sheet

with regards,

Cs. P.A. Patnaik

[CS Lucky Popli]

U can some of the shares to that person at some nominal Price.
Then it wud not amount to DEPOSIT.
Hope it may solve any probs.
Views Solicited...

  CS Lucky Popli
  Company Secretary
  +91 99230 62221
  Lucky...@gmail.com

[CS Lucky Popli]

U can transfer some of the shares to that person at some nominal Price.

Then it wud not amount to DEPOSIT.
Hope it may solve any probs.
Views Solicited...

--

[Bharatraj Panchal]

 

Dear All,

 

I agree with all ur views it will amount to deposit not permissible, but if the amount is too huge go with the proposed views of  Mr. Lucky for issue a new or transfering some of shares from a willing member and making him or that firm a member and  transfer the same back to the Company once the amount is paid.   

 

Contrary views are welcome.

 

Regards,

 

CS Bharatraj

[Suresh Kumar Vaishraj]

Dear Friends,

1. Can a firm be a member of a company? (As per the department's circular No.4/72 dated 9-3-1972). Only natural or legal persons can be a members of a Company under the Act. I afraid, even you wish, you can not issue shares against the said unsecured loan/ deposit.

2. As one of the member suggested, pay back the money to the firm. Take it back from the individual partners of the firm and allot nominal shares.

3. Though you do this way, violation will always be there from the date of receipt of moneys from the firm and till the date of re-payment.

4. Moreover, any contravention to the provisions of prospectus and deposit rules is not compoundable.

5. Better dont show such transaction in the books.

Correct me if I am wrong.

Thanks and Regards,

Suresh Kumar V
Company Secretary
91-9849991201

--