TaxTMI 
TaxTMI 
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?
Loan To Director
04 Sep 2015 
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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. (AI Summary)
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. (AI Summary)
