The provisions of Section 73(2) of the Companies Act, 2013 read with Rule 3 (3) of the Companies (Acceptance of Deposits) Rules, 2014, restrict a company to accept or renew any deposits from its members, if the amount of such deposits together with the amount of other deposits outstanding as on the date of acceptance …

Can a company accept deposits from another company?

No company shall invite or accept or renew any deposit in any form, carrying a rate of interest or pay brokerage thereon at a rate exceeding NBFC norms. An eligible company can accept deposits from public only to the extent of 25% of its paid-up capital and free reserve and securities premium account.

Is required to be passed if a company intends to accept deposits from its members?

No company shall accept, or renew any deposit, whether secured or unsecured, unless an application, in such form as specified by the company, is submitted by the intending depositor for the acceptance of such deposit and declaring that the deposit is not being made from money borrowed by it.

What is the procedure for accepting deposits from members?

1. Companies desirous of inviting and accepting deposits from their members need to convene Board Meeting and there needs to deicide and approve such business and at the last regarding day, time and date of conducting general meeting. 2. Issuing such notice of general meeting to the members of the company.

Who Cannot accept deposits?

A private company cannot accept deposits from public.

• Ans.
• According to Provision of Section 58 (A) of the Companies Act, 1956 and Rules (2) of the companies Rules, 1975, the term ‘deposit’ means any deposit of money accepted and includes any amount borrowed by the company.

Which company can accept deposits from public in one sentence?

Eligible public Company and Government Companies can accept deposits from the public.

Which company can accept deposits from the public?