Share capital of pvt co can be invested in deposits

There is no restriction in thiss regard provided the Article authorise the Company to invest.

Other views are solicited.

Thanks for the info

I mean that  as we are using the money from Share capital of the Company. Can We do that

As of now Company Cash balance is around Rs 72000/-

And i want to invest in Oriental Bank Deposits for Rs 50000/-

Is it amount to reduction of Share capital ?

Please help Me

 

No, It doesn't mean reduction in Share capital. Its just Utilisation of share capital.  

Thre Share Capital is can be used in the interest of the Company. and investment doesnt amount to reduction of Capital.

Yes, you can very well do that.  Pl go ahead...

 

 

When u invested capital in ur company then u must have passed an entry i.e. Cash/bank a/c debit to capital a/c.(rs. 1,00,000).. Nw when u r investing any money then u will pass an entry i.e. Investment a/c debit to cash or bank a/c(rs. 50,000). Now tell me how ur capital is going to be reduced? u r not going to use capital of ur company rather u r using the fund of ur company... I think its clear now.

Agreed with all views, moreever you may go through the section 100 of the Companies Act to know the meaning/circumstances of/comes under Reduction of Share Capital.

Regards

Agree with all experts.

Simple question is without Share capital money, how would you invest money into FD, even if you want to do business then also you need to utilise the money out of your bank account where you have already deposited your Share capital money.

Just within the boundary of AOA and MOA, you can utilise that money.

Thanks

Mihir Doshi