Loans from partnership firm where directors are partners

[Nishtha Jain]

Is it possible for a private company to accept loans from a partnership firm where directors are also partners? if yes, what limits are applicable? And if no, what other ways fund can be introduced the company?

AI Summary

Loan Dynamics: Partnership Firms Can Provide Financing to Private Companies Under Specific Regulatory Compliance Frameworks A private limited company can accept loans from a partnership firm where directors are partners, subject to specific legal conditions. Key considerations include compliance with Sections 185 and 188 of the Companies Act, related party transaction disclosures, and ensuring the loan's terms are at arm's length. Alternative funding options include equity infusion, unsecured director loans, and convertible financial instruments, each with its own regulatory requirements.