Can a shareholder not being a Director of the Company give loan to a Pvt Ltd Company as per New Co's Act

[Dipendar Daga]

Dear Professional Colleagues,

My query is whether can a shareholder/member of a Pvt Ltd Co give loan to its Pvt Ltd Co after application of new Companies Act 2013 & new Companies Acceptance of Deposit Rules 2014. Earlier as per Companies (Acceptance of Deposit Rules 1975) it was mentioned that any amount raised by a pvt ltd co. from its shareholder shall not be treated as deposit, whereas in the Current Rules, perhaps I feel either I have missed out or this point has been changed.

Kindly throw some light on this point.

Thanks

Regards

CA Dipendar Daga

[MOHIT SALUJA]

Dear Sir/ Madam

                         Greetings of the Day.

As per Rule 2(c)(viii) any amount received from a person who, at the time of the receipt of the amount, was a director of the company:

Provided that the director from whom money is received, furnishes to the company at the time of giving the money, a declaration in writing to the effect that the amount is not being given out of funds acquired by him by borrowing or accepting loans or deposits from others;

Means now a private company can accept the loan from its Directors only which earlier under CA 1956 was also allowed to be taken from Shareholders and Director's relatives which now has been abolished in total under NCA 2013

Regards,
CS Mohit Saluja

Mohit Saluja & Associates
Company Secretaries

Jalandhar
9914558709

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[069771 CA.AMIT SARAF]

Dear Mr Daga

Please note that under the New Companies Act,1956 only deposit from director is exempted from the definition of deposit.

Therefore deposit/unsecured loan taken from shareholder or relatives of director/shareholders will come under the definition of deposit. 

 

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Regards

CA Amit Saraf

Amit Saraf & Co

Chartered Accountants

171/1 Bangur Avenue

Block B 4th Floor

Kolkata:-700055

Cell:9830521257

Email:amit....@icai.org

website:amitsarafco.icai.org.in

[Manoj Jha]

As per companies Act 2013  read with new Deposit Rules 2014, a company can only receive loan from the following :

 

1.       any other company

2.       directors of the company

3.       employee of the company upto his annual salary

4.       promoters and their relatives  in pursuance to stipulation mentioned in bank sanction letter.

 

So, as per my opinion after new deposit rules 2014 a non company shareholder cannot give loan to Pvt. Ltd. company .

 

Thanks

Manoj Jha

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[Kalidas Ramaswami]

please note that there is a significant change in the definition of a private company in the new Companies Act.A plain reading of Section 2(68) makes it clear that there is no prohibition on a private company from accepting deposits from the public and its shareholders.The Companies(Acceptance of Deposits)Rules 2014 would also apply to a private Company.A reading of the Rules reveals that unlike in the old Act if a  private company raises deposits from its shareholders it does not have to take a confirmation to the effect that the funds provided are not from borrowed sources.
Given the above legal position we can say that a shareholder of a private company can provide funds by way of deposits .The Company should ensure compliance with the new deposit Rules.
regards
kalidas  
 

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Date: Fri, 18 Apr 2014 01:41:38 -0700
From: dipend...@gmail.com

To: foru...@googlegroups.com
Subject: [CA RUNGTA PD] Can a shareholder not being a Director of the Company give loan to a Pvt Ltd Company as per New Co's Act

[Rustagi & Co.]

Chapter V of the Companies Act, 2013 - "Acceptance of deposits by companies" and Companies (Acceptance of Deposit) Rules 2014 govern the provisions relating to deposits taken/to be taken by public companies as well as private companies. There are separate sections governing for accepting deposits from members (section 73) and public (section 76). There are certain conditions which a private company as well as public company has to follow to raise deposits from members. Only Eligible Companies ( public companies having a net worth equal to Rs. 100 cr or more, or a turnover equal to Rs. 500 cr or more)are eligible to raise deposits from public. Also note that deposits from relatives of members or directors are now treated as public deposits except in a case where promoters or their relatives are required to bring in their part of contribution as per stipulation of finance granted by a financial institution or a bank.

CA.Anurag Sharma

On Mon, 21 Apr 2014 11:01:13 +0530 wrote
>


please note that there is a significant change in the definition of a private company in the new Companies Act.A plainreading of Section 2(68) makes it clear that there is no prohibition on a private company from accepting deposits from the public and its shareholders.The Companies(Acceptance of Deposits)Rules 2014 would also apply to a private Company.A reading of the Rules reveals that unlike in the old Act if a private company raises deposits from its shareholders it does not have to take a confirmation to the effect that the funds provided are not from borrowed sources.

>Given the above legal position we can say that a shareholder of a private company can provide funds by way of deposits .The Company should ensure compliance with the new deposit Rules.
>regards
>kalidas

>Date: Fri, 18 Apr 2014 01:41:38 -0700
From: dipend...@gmail.com
To: foru...@googlegroups.com
Subject: [CA RUNGTA PD] Can a shareholder not being a Director of the Company give loan to a Pvt Ltd Company as per New Co's Act


Dear Professional Colleagues,
My query is whether can a shareholder/member of a Pvt Ltd Co give loan to its Pvt Ltd Co after application of new Companies Act 2013 & new Companies Acceptance of Deposit Rules 2014. Earlier as per Companies (Acceptance of Deposit Rules 1975) it was mentioned that any amount raised by a pvt ltd co. from its shareholder shall not be treated as deposit, whereas in the Current Rules, perhaps I feel either I have missed out or this point has been changed.
Kindly throw some light on this point.

ThanksRegardsCA Dipendar Daga

>

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R. N. RUSTAGI
Ashish Rustagi
c/o Rustagi & Co.
19, R.N Mukherjee Road
Eastern Building, 1st Floor,
Kolkata 700001
Phn No. 22480856,22480823
Mob No. 9339768131
Fax 22430746

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[Kalidas Ramaswami]

In my opinion the view expressed does not state the correct position in the law.The new companies Act 2013 allows a private company to raise funds by way of public deposits.under such a scheme a company can receive funds from his members as deposits.Members of a private company need not provide the confirmation which was required under the old Act from members to the effect that funds provided by them are not borrowed funds. 
regards
kalidas

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From: ma...@bhagwatibiscuits.com
To: foru...@googlegroups.com
Subject: RE: [CA RUNGTA PD] Can a shareholder not being a Director of the Company give loan to a Pvt Ltd Company as per New Co's Act
Date: Sat, 19 Apr 2014 12:06:15 +0530

[dadu]

Respected Sir, 

Kindly advise the sec / rule that "allows a private company to raise funds by way of public deposits". 

R u referring to rule 3 of Companies (Acceptance of Deposits) Rules, 2014. 

It does not seem to differentiate between Public or pvt companies.

It naturally follows, that such depositors, if they r also members, shld not need to gv any declarations. 

However, funds from Directors, need appropriate declaration, +, 

if the funds exceed the aggregate of free reserves & paid up Capital, a special resolution.

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[sush...@gmail.com]

Dear Sir,

It Means Company can take only loan from its Director.

Sushil Gupta
GM Accounts & Finance
+91 9899969881