Acceptance of deposits by a private limited company ca2013

Pvt ltd 903 views 9 replies

Pramod Pillai

Advocate

78 Points Joined June 2014

Dear Experts and Members,
Please clarify my following query.
As per the new CA2013 ,private companies are not allowed to collect deposits from its members and their relatives. And those deposits which are accepted has to file a form of declaration with the ROC.Also all deposits with the company has to return back beore 31 st march 2015. My query is that the agreement between the depositors and the company is for three years and those deposits not reach of three years also has to return? Is this considered as a breach of contract? any excemptions to continue the deposits?

Kindly clarify my query.

Thanks
Pramod.

Replies (9)

Arpit Shah

Accountant

21438 Points Joined August 2012

Check File

Pramod Pillai

Advocate

78 Points Joined June 2014

Dear Mr.Arpit Shah, My understanding is that as per CA2013 Pvt ltd companies can not accept deposits from their members.And those deposits with the company has to return before 31-03-2015. Thanks

Vijay Dixit

Student CS

100 Points Joined February 2015

If you are not in a position to reapay that money apply to CLB for extension of time to repay that money.

Pramod Pillai

Advocate

78 Points Joined June 2014

Thanks Mr.Vijay, My issue is we have a contract with the depositors for three years and is not matured.The contract was entered befoe the new CA2013.Now we are pressured to return the deposits and is against the contract. Kindly clarify

ANMOL JHA

Company Secretary

971 Points Joined February 2015

Dear

Read my article on the subject under Corporate Laws section. Many of your queries are answered in the article named " Refund of seposit u/s 74 of the companies act."

ANMOL JHA

Company Secretary

971 Points Joined February 2015

Dear

Read my article on the subject under Corporate Laws section. Many of your queries are answered in the article named " Refund of seposit u/s 74 of the companies act."

Arpit Shah

Accountant

21438 Points Joined August 2012

Sec 74 as per company act-2013: Repayment of deposit
accepted before the
commencement of this Act
1) Wherein the respect of deposit accepted before the commencement of the Act the
amount of such deposit or interest due which remains unpaid before the
commencement or after the company shall file
♦ within period of three month from such commencement or date thereof
♦ with the Registrar
♦ A statement showing the all deposits accepted + sums remaining unpaid
+ interest
♦ and arrangement for such repayment
♦ repay within one year from such commencement OR from the date on
which such repayments are due
2) The Tribunal after taking into the financial position , amount of deposit and other
matters allow further time
3) Default :- when the company fails to repay the deposit within the time prescribed
including the extended time limit
the company in addition to the deposits or interest be punishable
Company with a fine ----- Minimum 1 crore ; Maximum 10 crore
Every officer-------- imprisonment of 7 years
OR
Fine:- Minimum of Rs 25 lakhs
Maximum to 2 crore
OR both

Arun Jaiswal

89 Points Joined October 2009

Originally posted by : Arpit Shah

Sec 74 as per company act-2013: Repayment of deposit
accepted before the
commencement of this Act
1) Wherein the respect of deposit accepted before the commencement of the Act the
amount of such deposit or interest due which remains unpaid before the
commencement or after the company shall file
♦ within period of three month from such commencement or date thereof
♦ with the Registrar
♦ A statement showing the all deposits accepted + sums remaining unpaid
+ interest
♦ and arrangement for such repayment
♦ repay within one year from such commencement OR from the date on
which such repayments are due
2) The Tribunal after taking into the financial position , amount of deposit and other
matters allow further time
3) Default :- when the company fails to repay the deposit within the time prescribed
including the extended time limit
the company in addition to the deposits or interest be punishable
Company with a fine ----- Minimum 1 crore ; Maximum 10 crore
Every officer-------- imprisonment of 7 years
OR
Fine:- Minimum of Rs 25 lakhs
Maximum to 2 crore
OR both

Dear Sir,

The problem is that the company has no sufficient funds to return the loan within 31.03.2015. The company has got In-Principal Approval of loan from a financial institution, but due to some norms and procedure the disbursement of loan will start after 31.03.2015.

Kindly provide the solutions available to the company and what are the step by step procedures regarding making an application to the Tribunal (here Tribunal means Regional Director or CLB) for extension of time to repay the loan amounts.

Thanks & Regards.

Arun Jaiswal

Pramod Pillai

Advocate

78 Points Joined June 2014

Dear Mr.Anmol Jha, Thanks for your contribution. Again I have three more basic queries. 1,Whether a private company can accept deposit from its Directors,members and their relatives.?? 2,Whether the company can pay interest on the deposits?? 3,If yes to the above two..then what are the compliance to be made?? 4,If the deposits accepted before the commencement of the CA2013 and is not due .And no new deposits accepted and renewed. whether the company to repay the deposits before 31st amrch 2015.?? 5,What is the procedure to accept fresh deposits from its members by a private company?? Reqest your valuable contribution. Thanks to all .