Private Company Can Receive Loan from Relatives of Directors : Rules Notified

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A relaxation for loan acceptance by private companies was notified by amendment to Companies (Acceptance of Deposits) Second Amendment Rules, 2015, which says that now private companies can accept loans not only from Director but also from any person who is relative of the director.

It is however with riders that :

1. A declaration from reltaive that the money loaned is not from any borrowed money
2. That information has to be publsihed in the director’s report.

Read thenotifction below :

Notification for Loan from Relatives of Directors