Loan given by director to pvt ltd co

Following recent amendments, private limited companies face restrictions on taking loans from shareholders and promoters. This discussion explores a scenario where a major shareholder, who is also a director, provided an interest-free, callable loan to the company. The query centres on whether the loan, given before the individual became a director, needs to be recalled and re-issued in their directorial capacity to comply with regulations. Advice suggests recovering the loan to regularise it and then granting a fresh loan as a director, ensuring legal compliance.