Deposits from share holders

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 December 2013 Whether a private limited company is permitted to accept deposits from its shareholders or directors as per Companies Act 2013?
How to manage existing deposits from share holders of a private limited company.

Ajay Mishra

Ajay Mishra (Expert)
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05 December 2013 Hi

As per new Companies Act, 2013 a company can accept unsecured loan from its director and it will not be treated as deposit.

But yes if it accepting deposits from members then it will cover under deposit section 73 of the Act.

Querist : Anonymous

Querist : Anonymous (Querist)

05 December 2013 Thank you

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Ajay Mishra

Ajay Mishra (Expert)
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05 December 2013 My Pleasure..........