Acceptance of deposit from a non-director
This query is : Resolved
14 March 2013
Dear Experts,
The Directors of ABC Pvt Ltd has borrowed funds from another Pvt Ltd Company and purchased Equity Shares of ABC Pvt Ltd. Can they do so, is there any consequences?
The Directors of ABC Pvt Ltd has borrowed funds from another Pvt Ltd Company and purchased Equity Shares of ABC Pvt Ltd. Can they do so, is there any consequences?
14 March 2013
Hi
Rule 2(b)(ix) exempts any amount received by a company from its shareholder from the definition of deposits. The shareholder shall furnish a statement to the company at the time of bringing in the money that the money has not been borrowed or accepted by him from other sources, to make deposit with the company.
In your case, your director arrange funds for purchasing of shares will cover under the deposit and can not get benefit of Rule 2(b)(ix).
Rule 2(b)(ix) exempts any amount received by a company from its shareholder from the definition of deposits. The shareholder shall furnish a statement to the company at the time of bringing in the money that the money has not been borrowed or accepted by him from other sources, to make deposit with the company.
In your case, your director arrange funds for purchasing of shares will cover under the deposit and can not get benefit of Rule 2(b)(ix).
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