Companies act 2013-amendments
Falguni S Swadia
(Querist) 13 January 2014
This query is : Resolved
Dear Sir,
I am a chartered accountant and with reference to section 185 of the Companies Act 2013, i want to clarify about the loans to directors of a Private Company. Previous Companies Act 1956 exempted the directors of Private Company from the said section, but now even private companies can not give loan to directors. But what about the loan already given by the Pvt. companies to their directors? whether they have to recover the same and is there any time limit for the same? There are no clarifications for the same in amended act.
ajay sethi
(Expert) 13 January 2014
companies act 2013 would have prospective effect . it would not affect loans already given to directors prior to passage of new companies act 1956 . when loan was advanced to directors it must have mentioned period wherein loan has to be repaid . any renewal of loans would have to be in conformity with 2013 Act . wait for rules to be notified
Rajendra K Goyal
(Expert) 13 January 2014
Agree with the advise of expert ajay sethi ji.
