Wednesday, 16 September 2015

Now Private Companies can accept loan from Directors Relatives

     

Companies (Acceptance of Deposits) Second Amendment Rules, 2015

Ministry of Corporate affairs vide its notification dated 15.09.2015 has provided that wef 15.09.2015 a private company can  accept unsecured loans apart from director also from a relative of Director  provided that relative of 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 and the company shall disclose the details of money so accepted in the Board’s report.  The relative need not be a shareholder of the company.

Further Notification has also provided that balance securities premium account will also be included in calculation of eligible amount of deposit which a company can raise earlier Rule 3 has provided only paid up share capital and free reserves.

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