Private limited company can accept loan from relative of director – MCA Notification

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, 

SECTION 3, SUB-SECTION (i)] 

Government of India 

Ministry of Corporate Affairs 

Notification 

New Delhi, dated, the 15th September, 2015 

G.S.R. (E). – In exercise of the powers conferred by sections 73 and 76 read with sub-section (1) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Acceptance of Deposits) Rules, 2014, namely:- 

1. (1) These rules may be called the Companies (Acceptance of Deposits) Second Amendment Rules, 2015. 

(2) They shall come into force on the date of their publication in the Official Gazette. 

2. In the Companies (Acceptance of Deposits) Rules, 2014 (hereinafter referred to as said rules), in rule 2, in sub-rule (1), in clause (c), for sub-clause (viii), the following shall be substituted, namely:- 

“(viii) any amount received from a person who, at the time of the receipt of the amount, was a director of the company or a relative of the director of the private company: 

Provided that the director of the company or relative of the director of the private company, as the case may be, from whom money is received, furnishes to the company at the time of giving the money, a declaration in writing to the effect 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;”.