28 January 2010
Limit of amount for acceptance of deposits
As per rule 3(2) a company may accept deposits from the public upto the following limits subject to fulfillment of the conditions of the Companies (Acceptance of Deposit) Rules, 1975:— (a) upto 10% of its paid-up capital and free reserves from its shareholders (other than a shareholder in a private company). These deposits may also include any deposit from any person guaranteed by a director of the company or against unsecured debenture issued by a company;
(b) upto 25% of the paid-up capital and free reserves of the company from public.
28 January 2010
Limit applicable for borrowing by a Government company
Rule 3(2A) provides that a Government company may accept or renew deposits, if the amount of such deposits does not exceed 35% of its paid-up capital and free reserves including any short-term deposits accepted by a government company up to 10% of its paid-up capital and free reserves.
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