Loan from HUF to a pvt Ltd Company

[Slatewala]

Dear Members,

Can a company take a loan from an HUF who is also the shareholder of the company??

Please advice at the earliest

[Abdul]

see pvt ltd co defination 

company can accept loan from members or directors or their relatives 

HUF cannot become member of co so, 

 company cannot accepet loan from HUF. 

[KAGGANTY NAGESH BABU]

I think yes if a pvt co if he is a member

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[Slatewala]

As we all know that HUF has no legal capacity to become member of the Company or to keep share in its name. 

Its the karta who shall keep shares on behalf of HUF. 

In the books of Company the registered owner will be the Karta as under:- Shri X Karta for XYZ HUF

[Manish Raut]

This falls under Deposit rules rule 2(b)(ix).

Now the question arises whether HUF can be termed as relative of director. If it can be termed as relative of Director then Private Company can take loan from HUF

Warm Regards,

Manish