It sounds like the most natural thing in the world, a shareholder lending money to their own company when cash flow gets tight, and technically it is possible. But the Companies Act, 2013, does not allow doing this casually. Because any money a company takes from a member can be legally treated as a deposit, and deposits come with a rulebook that most founders don’t read till they’re ... https://www.corpzo.com/shareholder-loans-to-a-company-what-does-the-law-allow
Shareholder Loans to a Company: What Does the Law Allow?
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