Private company accepting money.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 May 2017
A private is engaged in west water treatment. company wants to take money from their proposed clients in form of nonrefundable deposit and issue them membership certificate. and then after they will serve only to the member on a chargeable basis.
The members will only be member and not shareholder.
My question is
1. Can Private company take such nonrefundable money in any form ?
2. Can Public company do the same?

c.bakshi

c.bakshi (Expert)
Follow

23 May 2017 private company cannot accept money other than shareholder, directors or relative of directors or shareholders. however, if you accept money from a supplier within 365 days, it is also not fall under the purview of "DEPOSIT" as per Companies Act, 2013.

moreover, a company can enter into written agreement and finalized terms and conditions but cannot accept money in a manner you are saying.

however, public company can accept deposit