11 July 2014
Hi Procedure for acceptance of a deposit from a director, any special provisions if this is only a guarantee given on behalf of the company?
11 July 2014
Any amount received from director of the company is exempted under the definition of deposit. A company can accept deposit from director of the company. The director shall 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.
A director can give guarantee on behalf of the Company. No other provision of the Companies Act, 2013 will attract.
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