• Filter Your Search
            
       
 
Notifications
(0)
Circulars
(0)
Orders
(0)
News
(0)
Queries
(0)
No updates found in last 7 days.
Notifications|Circulars|Orders|News|Queries


Q & A

 
28914 Views 5 Ans

A Private Limited company accepted unsecured loan from its existing two Directors. This is exempt deposit under section 73 of the Companies Act, 2013. Subsequently above two Directors resigned from the Directorship of the Company. Is the loan becomes deposits after their resignation? Is the loan becomes repayable after resignation not to attract deposit Rules ?

Section 73- Prohibition on acceptance of deposits from public.

Posted By: Som nath 10 year(s) ago

This question has been closed if you want to answer,you have to re-open.


    VenkadasalamV

There is no necessity to repay the loan immediately and at the time of acceptance of loan the person who has given loan were directors and the money can be retained till the date of maturity.

  • Comment
  •   Comment (0)

    Akansha

It is exempt under section 73 of the Act and subsequent to resignation it shall be paid back as per the terms and condition of the loans and therefore not to be treated as deposit

  • Comment
  •   Comment (0)

    RAMAMURTHY

It is a view that deposits are accepted for a tenure. If the deposits were accepted for a tenure of say five years and after acceptance of deposits, the director resigns, immediately the deposit does not become repayable or it does not lose the character of exempted deposit. The company has to show proper documentation that the deposits were accepted for a tenure longer than the period till the resignation of director. Otherwise, if the company has borrowing from banks and banks have put stipulation of unsecured loans then this can also fall under the category of promoter deposits if other conditions are satisfied (not made deposits out of borrowings and the director is otherwise relative of promoter). Only when the exempted deposits are repayable, the character of exempted deposits is lost.

  • Comment
  •   Comment (0)

    V. Maslekar

In terms of Rule 2(1)(viii) of Companies (Acceptance of Deposits) Rules, 2014 any amount received from a person who, at the time of the receipt of the amount, was a director of the company , is exempted deposit amount. It is clear that the said person should be a director at the point of giving the money. What happens later is immaterial. The loan cannot become deposit just because the director has resigned.

  • Comment
  •   Comment (0)

    SUSHIL KUMAR ANTAL

Please note that deposit does not include any amount received from a person who, at the time of receipt of the amount, was a director of the company. Therefore, if director resign later on, the amount given by him will not included in the definition of deposit.

  • Comment
  •   Comment (0)

Recently Active Member

Recently Active Member

RAHUL
SELF

Post Your Question
My Q&A
 


Topic

Sections

About Q&A

Q & A is a unique platform to get your answers. You can create questions by topics or sections for easy identification of your query . You get various alerts to keep you connected and can also search your query.


So keep posting and stay connected
#
Companies Act 2013/1956
Decoding the New Act
Resource Center
My Section
Information Cafe
Calculators


COPYRIGHT NOTICE: All information and material posted in this website (including but not limited to text, audio, video or graphical images), are subject to copyrights owned by Corporate Professionals eSolutions Private Limited, its affiliates and associates. Any reproduction, retransmission, republication, or other use of all or part of this document is expressly prohibited, unless prior permission has been granted by Corporate Professionals eSolutions Private Limited. All other rights reserved.

© Corporate Professionals eSolutions Pvt Ltd. | All Rights reserved
Scroll