TaxTMI 
TaxTMI 
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?
Loan to related
25 Apr 2018 
1 Reply 
1018 Views Asked by
Loan to related party denied where company director is a partner in recipient partnership, despite equity funding.
Whether a private limited company may advance a loan to a partnership firm in which a director who holds half of the company's shares is a partner; the company proposed to fund the advance from equity and has no external borrowings. The responding practitioner advised that such a loan cannot be granted and invited further expert views, flagging related party, fiduciary and statutory considerations. (AI Summary)
Whether a private limited company may advance a loan to a partnership firm in which a director who holds half of the company's shares is a partner; the company proposed to fund the advance from equity and has no external borrowings. The responding practitioner advised that such a loan cannot be granted and invited further expert views, flagging related party, fiduciary and statutory considerations. (AI Summary)
