Loan to related

[Arun Aggarwal]

Sir

Can a pvt Ltd company can give loan to a partnership firm in which one the director holding 50% shares is also a partner , The company hasn't taken any loan and it will be from the equity?

AI Summary

Can a company lend to a partnership where its director is a partner using equity? Opinions sought on legality. A private limited company is inquiring whether it can extend a loan to a partnership firm where one of its directors, holding 50% shares, is also a partner. The loan would be funded from the company's equity, as no external loans have been taken. A respondent expressed the opinion that such a loan cannot be granted, though they also sought additional expert opinions on the matter.