Director given loan to the private company

[Sonu Saini]

Dear all professionals,

If a person being director has given unsecured loan to the private company and later he resigned then what will be the treatment of such loan wheather it will be non compliance/violation of the companies act so on since loan is still unpaid.

According to my interpretation if we read deposit definition under the companies act 2013 company can continue with such loan if it received loan from director who at the time was director of the company.

Please guidance and ur suggestions me to solve this matter.

I would be grateful to you.

Thanks

Sonu Saini

Company secretary 

[Rajesh]

The Company can continue with the loan amount, not an issue.  

As per the Act and the Rules a person should be a Director as on the date of giving loan.

Later on he / she can resign, but the amount given by ex-Director will not be treated as Deposit.  

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