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advertisement of accepting deposit

25 May 2010

Dear Friends,

Please Suggestme regerding the following case:-

A Company filed a copy of advertisement approved by the Board in its meeting held on 31^st March, 2009 in connection of with inviting fixed deposits with the concerned Registrar of companies on the 1^st April, 2009. It published the said advertisement for the First time on 10^th August 2009. is the action of the company valid.

Thanks in advance.

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CS Ankur Srivastava (Company Secretary & Compliance Officer) (17848 Points)
Replied 25 May 2010

An advertisement is required to be issued by or on behalf of the Company after the date it is delivered to the ROC for registration signed by the majority of directors. The date of issue of advertisement in the news paper shall be taken as the date of issue of the advertisement.

In this context the date of issue of advertisement will be considered as 10 August, 2009. The company can accept deposit only after that date.