Declaration from a director under rule 2(1)(C)VIII

Format of declaration from a director under rule 2(1)(C) clause viii

As per rule 2(1)(C) clause viii of of the Companies (Acceptance of Deposits) Rules, 2014 , any amount received from a person who, at the time of the receipt of the amount, was a director of the company is not a deposit. However, the said director should give 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.

In simple words, a director can advance money/give a loan to the company from “own funds” and not from funds borrowed by him/her.

Declaration under Rule 2(1)(C) clause viii by the director needs to be furnished to the company at the time of giving the money.

Here is the draft format of the declaration under Rule 2(1)(C) clause viii for easy reference. You can modify the same as per your requirements.

DECLARATION

[Pursuant to Rule 2(c) (viii) of the Companies (Acceptance of Deposits) Rules, 2014]

TO,
THE BOARD OF DIRECTORS,
ABC PRIVATE LIMITED,
ADDRESS

I, undersigned, Director of M/s……………………………………. CIN: …………. (Hereinafter referred to as “the Company”) [agreed to lend/advance Rs.000 to the Company]* or [entered into agreement with the Company to lend/advance Rs.000 to the Company vide agreement dated……]*

Pursuant to the agreement, I am lending/giving advance* of Rs. ……………../- (Amount in Words) as unsecured loan [as per the terms of the agreement]* to the Company. Further, pursuant to Rule 2(c)(viii), I do hereby solemnly affirm and declare that the amount of loan/advance* has been given out of my own funds and is not being given out of funds acquired by me by borrowing or accepting loans or deposits from others.

I further state that the above information is true and correct and no material information is undisclosed by myself. Further, I am aware of the consequences for false information and the liabilities that will accrue on account of such false declarations.

__________________
NAME & SIGNATURE

ADDRESS:
DATE:

*Delete which is not required