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 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 director can advance money/give 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 furnish to the Company at the time of giving the money
Here is the draft format of 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 lent/advance Rs.000 to the Company]* or [entered into agreement
with the Company to lent/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 agreement]* to the
Company. Further, pursuant to Rule 2(c) (viii) I do hereby solemnly affirm and declare
that and 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