Companies (Acceptance of Deposits) Second Amendment Rules, 2015
Ministry of Corporate affairs vide its notification dated 15/09/2015 has provided that with immediate effect a private company can accept unsecured loans from directors and also from a relative of Director provided that at the time of lending money the relative of director from whom money is received must furnish to the company, a declaration in writing stating that the amount is not being given out of funds acquired by him by borrowing or accepting loans or deposits from others and the company shall disclose the details of money so accepted in the Board’s report (Annual Report). Further more such relative need not be a shareholder of the company.
With this amendment a private company is allowed to take loans, deposits from members, Directors and relatives of directors not exceeding aggregate of 100% of its paid up capital, free reserves and securities premium account..
