Deposits
This query is : Resolved
Rajiv Kaicker
(Querist)
11 June 2010
Can a Private Company invite deposits?If yes,what is the procedure to be followed and what are the limits?
Regards,
Rajiv Kaicker
Regards,
Rajiv Kaicker
11 June 2010
Private Limited company is prohibited from inviting any invitation or acceptance of deposits from persons other than its members, directors or their relatives.
Rajiv Kaicker
(Querist)
11 June 2010
Okay.But what procedure is required for this purpose?Also,in such cases ,the limit in terms of Paid up capital and free reserves shoulnot apply?Pls confirm.
11 June 2010
Pl see section 3(1)(iii)(d) of the Companies Act,1956 which is self explanatory so as to clear your doubt.
Rajiv Kaicker
(Querist)
11 June 2010
What are the steps to be followed such as satement in lieu of advertisement,etc,? And is the limit 35% of the paid up capital and free reserves?
Ankur Garg
(Expert)
11 June 2010
No need to follow any procedure...Private co. is not allowed to accept deposits by virtue of section 3(1)(iii)(d).
Thanks
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