COMPANY LAW - VALIDITY OF ADVERTISEMENT

Save Share

This query is : Resolved

Simranjeet Singh (Querist)

30 September 2010 Dear experts

Can any one let me understand the concept of validity of advertisement issued for inviting public deposits with a short and simple example.

Thanks in advance...

Ankur Garg

Ankur Garg (Expert)

01 October 2010 Validity period of the advertisement issued

Rule 4(3) of deposit rules, 1975, provides that the advertisement issued at any time will be valid only up to six months from the conclusion of the financial year of the company in which the advertisement was issued.

In other words, an advertisement will be valid till the expiry of the annual general meeting of the company for that year if held within the prescribed time or ought to have been held so and a fresh advertisement shall have to be made for accepting deposits in each succeeding financial year, provided there is no delay on the part of the company to hold the annual general meeting in terms of section 166 of the Act.

Message likes : 1 times

Simranjeet Singh

Simranjeet Singh (Querist)

01 October 2010 Thanks Ankur sir for the reply....

But in module it is given like this

valid upto earlier of the following

1. up to six months from the conclusion of the financial year of the company in which the advertisement was issued.

2. the date on which the balance sheet is laid down in next AGM.

3. if AGM in a particular year is not held the last date on which it should have been held in accordance with section 166 read with section 210.

so can u pls explain it with an example...
i am not getting it....

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now