Dear All,
I have one very big confusion about Section 58 A of Companies Act, 1956. is this section apply to Public Companies only?? and if deposits accepted from Corporate Sectors or companies by a Private Limited Company then is it violation of this rule?? and are the companies from which the deposits are accepted are covered in deposits from Public in case of Private Companies???
Dear Ms. Ekta
Definition of private company as given under Section 3(1) (iii)(d) prohibit any invitation or acceptance of deposits from persons other than its members, directors or their relatives.
Best Regards
Hi,
1) Section 58A is applicable to Public as well as Private Companies,
2) Deposits accepted by a company from another company is outside the purview as the definition of `deposit` excludes it.
3) I didn't get this.
Pl refer to Rule 2(b)(iv) of Companies (Acceptance of Deposits) Rules 1975 which excludes inter-company deposits from the definition of deposits.
Thanks
Yes yor are right
I THINK SECTION 58A ALSO APPLIES TO PRIVATE COMPANIES
ONLY VIOLATION TO THIS SECTION IS FOR BANKUNG COMPANIES AND OTHER COMPANIES WHERE CG WITH CONSULTATION WITH RBI...
Thank you all for the reply, I get the point.
Section 58A applies to both Private as well as Public Companies. However in case of Private Companies deposit may only be accepted from its members, directors or their relatives.
Intercorporate deposits are not treated as deposit in terms of Rule 2(b)(iv).
section 58a applicable to section 25 company????
CAclubindia
