Can a director be an employee in South Africa?
A director is thus not an employee of a company, although he or she can be an employee in addition to holding the independent office as a director. See The Law of South Africa (First Reissue (1996)) Volume 4 Part 2 at para 52; Anderson v James Sutherland (Peterhead) Ltd 1941 SC 203 at 217.
Can subsidiary give loan to holding?
Lender (Subsidiary) can give loan to such holding Company by complying with conditions of sub section 2 of Section 185. Condition: The loans are utilized by the borrowing company for its principal business activities.
Can a director take a loan from his own company?
As a limited company director, you can take out funds from the company. However, any money taken from the business bank account – aka the director’s loan account – not relating to salary, dividends or expense repayments will be classed as a director’s loan.
Do directors receive a salary?
Since company directors are technically employees of a limited company, they too are able to receive a salary.
What does Section 185 of the Companies Act 2013 say?
There are four subsections of section 185 of the companies act 2013. No company shall, directly or indirectly, advance any loan, including any loan represented by a book debt to, or give any guarantee or provide any security in connection with any loan taken by,—
What does section 372a of the Companies Act 1956 exempt?
The issue has been examined with reference to applicability of section 372A of the Companies Act, 1956 vis-a-vis section 185 of the Companies Act, 2013. Section 372A of the Companies Act, 1956, specifically exempts any loans made, any guarantee given or security provided or any investment made by a holding company to its wholly owned subsidiary.
How does Section 185 apply to Nidhi company?
Section 185 shall not apply to a Nidhi company provided the loan is given to a director or his relative in their capacity as members and such transaction is disclosed in the annual accounts by a note; vide Notification No. G.S.R. 465 (E) dated 5th June, 2015. Rule 10. Loans to Director etc. under section 185 .—