Loan To Director

[satyanarayan sharma]

If a Company Is Incurring Losses since last 3 Year and Its Share capital & reserve Has Already Wiped Off Than Can company give Loan to Its Director?

[DR.MARIAPPAN GOVINDARAJAN]

In my view it is not possible.

AI Summary

Loans to directors restricted when company's share capital and reserves are fully wiped out, barring advancement. A company whose accumulated losses have wiped out its share capital and reserves cannot grant a loan to a director; the impaired capital status prevents making such advances to related persons.