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Loans from Directors and their Relatives would not be counted as Deposits for Private Companies
MCA vide Companies (Acceptance of Deposits)Second Amendment Rules, 2015 dated 15th September, 2015  provided a green signal to the Private Companies. As, now the directors of private company and their relatives can also provide loans to the company out of their own funds. This is a major change which was a big concern for the private companies as with the new act the private companies were not allowed to accept money from their directors or their relatives as those were considered as deposits and private companies were not allowed to accept deposits. However, this freedom is subject to certain conditions which are as follows:

1. The Directors or their relatives 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
2. The company shall disclose the details of money so accepted in the Board's report.
 
The bare act language is produced as under for your reference:
In rule 2(1)(c) (viii) of the Companies (Acceptance of deposit rules),2014  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;"'
 
2.       In the said rules, in rule 3, -
 
(a) for the words "paid-up share capital and free reserves", wherever they occur, the words "Paid-up share capital, free reserves and securities premium account" shall be substituted;
 
(b) in sub-rule (8), in the Table, for item (e) and entries relating thereto the following shall be substituted, namely :
 
“(e) Brickwork Ratings India Pvt Ltd (Brickwork)                                         BWR FBBB”