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Can a Director obtain loan from his Private Limited Company?

Section 185- Loan to directors, etc.

Posted By: Akansha 10 year(s) ago

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Expert Ankit Singhi

The text of Sec 185 (1) says No Company (whether a Private Co. or Public Company) shall directly or indirectly, advance any loan to any Director or another person in whom director is interested. Thus, Director except MD/WTD is not eligible to take loan from his private limited company. However some exceptions for MD or WTD is provided in the section.

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