Public deposit in private limited

I am trying to resolve your question. I will back in some hours.

Though there is some exemption in clause vi of the acceptance of deposit rules, but i dont think it can override the restriction imposed u/s 3 of the comanies act and hence a pvt co cant accept any deposit from persons other than director, members and their relatives.

waiting for others to add their comments

Hi Amol,

I agree with Santosh in your case it appears that this would be a clear violation of Section 3 of the Companies Act. The Company can accept money only from its members or directors and no outsider.

Thanks & Regards

Amit Mishra

BSamrish & Co.

New Delhi

Dear Santosh,

But some Private Limited Companyes Accepts Direct Deposits from public

Amol

Dear Amol,

Pvt. Companies caanot accept deposits from public until and unless they are NBFCS accepting deposits from public dat is non-banking financial companies.

Regards

Shivi

Under section 3(1)(iii) there is Prohibition to invitation or acceptance of deposits from persons other than its members, Directors or the relatives.

CAN ANYONE PLEASE GIVE ME A DRAFT AGREEMENT OF LOAN TAKEN BY A PVT LTD COMPANY FROM ITS DIRECTOR'S SPOUSE...........

No Pvt. Company cant do that .............

(d) prohibits any invitation or acceptance of deposits from persons other than its members, directors or their relatives

Hence Company can't Accept Public Deposit

But

You can Make Practical Public Invitation by Cracking these Line and Proving that the Invitation is not Public : Section 67(3)

"

(3) No offer or invitation shall be treated as made to the public by virtue of sub-section (1) or sub-section (2), as the case may be, if the offer or invitation can properly be regarded, in all the circumstances—

(a) as not being calculated to result, directly or indirectly, in the shares or debentures becoming available for subscripttion or purchase by persons other than those receiving the offer or invitation; or

(b) otherwise as being a domestic concern of the persons making and receiving the offer or invitation:

¹[Provided that nothing contained in this sub-section shall apply in a case where the offer or invitation to subscribe for shares or debentures is made to fifty persons or more:

"