Query on deposit
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
03 December 2013
Dear Sir,
I have a query on deposit,hope to get cooperation about it.
A pvt co is not allowed to take loan from individual. A pvt co can only take loan from Directors, and relatives of Directors & shareholders.
If a pvt co.takes loan from individual it is violation of section 58A. So what are the penal provisions applicable for this? As the section says:
Section 58A talks about penalty which are applicable if the deposits amount exceeds beyond the limit & if it is not repaid within the time prescribed.
Thanks in advance
I have a query on deposit,hope to get cooperation about it.
A pvt co is not allowed to take loan from individual. A pvt co can only take loan from Directors, and relatives of Directors & shareholders.
If a pvt co.takes loan from individual it is violation of section 58A. So what are the penal provisions applicable for this? As the section says:
Section 58A talks about penalty which are applicable if the deposits amount exceeds beyond the limit & if it is not repaid within the time prescribed.
Thanks in advance
04 December 2013
Deposits in case of Private Limited Company
Private Company is prohibited to accept any invitation or acceptance of unsecured loans/deposits from the persons other than its members, directors or their relatives. Therefore a private company can accept deposits through private arrangement from its members, directors and their relatives.
Rule 2(b)(ix) exempt any unsecured loan money received from directors and shareholders from the definition of deposits. According to Rule 2(b)(ix), any amount received from members of a private company limited by guarantee are not exempt.
Rule 3 of Companies (Acceptance of Deposits) Rules, 1975 deal with the limit upto which a company can accept deposits/ loans. Private company exempted this limit.
For any invitation and acceptance of unsecured loan/deposits from relatives of directors and member, the company will have to file a statement in lieu of advertisement in accordance with the provisions of Rule 4A of the Companies (Acceptance of Deposits) Rules, 1975. The company will also have to file annual return of deposits in accordance with Rule 10.
Deposits in case of Private Limited Company
Private Company is prohibited to accept any invitation or acceptance of unsecured loans/deposits from the persons other than its members, directors or their relatives. Therefore a private company can accept deposits through private arrangement from its members, directors and their relatives.
Rule 2(b)(ix) exempt any unsecured loan money received from directors and shareholders from the definition of deposits. According to Rule 2(b)(ix), any amount received from members of a private company limited by guarantee are not exempt.
Rule 3 of Companies (Acceptance of Deposits) Rules, 1975 deal with the limit upto which a company can accept deposits/ loans. Private company exempted this limit.
For any invitation and acceptance of unsecured loan/deposits from relatives of directors and member, the company will have to file a statement in lieu of advertisement in accordance with the provisions of Rule 4A of the Companies (Acceptance of Deposits) Rules, 1975. The company will also have to file annual return of deposits in accordance with Rule 10.
04 December 2013
Consequences of acceptance of deposit by Private Limited Company
If a private company acceptance an amount, which may be classified as deposit under section 58A read with Companies (Acceptance of Deposits) Rules, 1975, it will cease its status of a private company and has to make all the compliances for such deposits as per the requirement of said rules, as well as to comply with all the provisions as may be applicable on public limited company such as section 58A, 58AA, 58AAA, 81, 256, 257, 198, 268, 269, Schedule XIII, 274(i)(g), 295, 297, 300, 301, 372A, etc
Consequences of acceptance of deposit by Private Limited Company
If a private company acceptance an amount, which may be classified as deposit under section 58A read with Companies (Acceptance of Deposits) Rules, 1975, it will cease its status of a private company and has to make all the compliances for such deposits as per the requirement of said rules, as well as to comply with all the provisions as may be applicable on public limited company such as section 58A, 58AA, 58AAA, 81, 256, 257, 198, 268, 269, Schedule XIII, 274(i)(g), 295, 297, 300, 301, 372A, etc
Querist : Anonymous
Querist :
Anonymous
(Querist)
05 December 2013
if the company cease to be a private company, will there be no penalty or any other solution to revert its status back into private company.?
05 December 2013
You check whether at the time of taking loan what is the status of company, it was public or private. It will depend on that.
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