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Deposit

Rashid Rahman (nthng) (45 Points)

29 June 2016

How much money can be accepted by a private company as deposit from directors, member and share holders ? Is the limit 100 of paid up share capital and resrves and surplus plus security premium or any amount they wish.is it applicable to major and minor share holders defacto

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4 Replies

Dharmendra Kumar Jha (Employment) (34 Points)
Replied 29 June 2016

The amount of deposit accepted by the private company does not exceed 100% of aggregate of paid-up capital and free reserves There is no any disttinguish between minor or major .Read section 73 (2) of the act,13.

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Pratik Shah (Practising Company Secretary) (4432 Points)
Replied 29 June 2016

In addition to what Dharmendra bhai said, any Company can take loan/deposit from Director without any limits, subject to compliance of Section 180 of Companies Act, 2013.

Rashid Rahman (nthng) (45 Points)
Replied 29 June 2016

thank you

Jatin Bajaj (CS) (2928 Points)
Replied 30 June 2016

According to section 73 of companies Act, a Private Company can accept deposits from members upto 100% of agregate of paid up share capital and free reserves and it shall be allowed to be taken from directors without any such limit, however director has to furnish declaration with the companyat the time of being money given to the Company that amount is not being given out of the funds aquired by him by borrowing or accepting loans or deposits from others