Loans and deposits in case of Private ltd company

[Nishtha Jain]

Can someone please provide checklist for Private limited company regarding acceptance of loans and deposits from the directors/shareholders/ relatives of directors and also regarding providing loans to directors, members or relatives. What are the restrictions, prohibitions and applicable law ? What are the penalties in each case of violation?

AI Summary

Directors' Loans and Deposits: Navigating Strict Compliance Rules Under Companies Act with Careful Documentation and Disclosure A private limited company must carefully navigate legal restrictions on loans and deposits involving directors, shareholders, and their relatives. The Companies Act, 2013 provides specific guidelines for accepting deposits and extending loans, with exemptions for certain transactions. Compliance requires obtaining declarations, maintaining proper documentation, and filing requisite forms. Violations can result in significant financial penalties and potential imprisonment for company officers.