Section 58A of Companies Act, 1956

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????