Acceptance of deposits by companies

This query is : Resolved

Kanchan (Querist)
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16 April 2016 Is the Company required to take Shareholders approval every year for the inviting deposits and approval of DPT 1.

CS Ankur Srivastava

CS Ankur Srivastava (Expert)
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21 April 2016 Yes this approval is to be done every year. The Circular shall be valid until the expiry of six months from the date of closure of financial year in which it is issued or until the date on which the financial statement is laid before the company in annual general meeting or where the annual general meeting for any year has not been held, the latest day on which that meeting should have been held in accordance with the provisions of the Act, whichever is earlier and fresh circular shall be issued in each succeeding financial year for inviting deposits during that financial year.