Acceptance of fixed deposit by a public ltd.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 February 2012 Dear Members,
Can a Public Ltd. accept a fixed deposit from other than its members(i.e. who is not a member)
If yes, than please justify with references of the provision.

My second query is that if a pvt. ltd. is a member of public ltd.. Can public limited accept deposit u/s 58A

First query is on preference

Guest

Guest (Expert)

23 February 2012 Only deposits from directors is exempt in the case of public company. Deposit from non members will attract section 58A.

Inter corporate deposits are exempt under deposit rules hence section 58 A will not be applicable if pub co accept deposit from pvt co. even if pvt co is not member of public co.

Rule 2 (b) (ix) and Rule 2 (b) (iv) of acceptance of deposit rules 1975 governs the provisions of your query respectively.

Querist : Anonymous

Querist : Anonymous (Querist)

23 February 2012 Thnks Neha,
To be specific we are furnishing the advertisement & return vide form 62 with ROC it mean we follow sec.58a, in this situation can we accept the deposit from our members or non-members by differential interest rate

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