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Deposits

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Charusheela M. Parihar (Querist)
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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?

Shashikant Sharma

Shashikant Sharma (Expert)
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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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Charusheela M. Parihar

Charusheela M. Parihar (Querist)
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11 July 2014 Thanks a lot Shashikant..

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