Section 58 A of companies Act

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YOGESH GUPTA (Querist)
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23 January 2010 Company has been converted from Private limited company to public limited company.

We have certain unsecured loans in private limited company from third parties (parties not related to director or shareholders).

Now what are the implication under section 58 A of companies Act.

Whether any sort of advertisement required or we have to pay back these loana

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
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28 January 2010 in my opinion, even private ltd. company is not entitled to accept deposits from the third parties . refer sec.3(1)(iii) (d) of The companies act,1956. The defination of Deposit includes any receipt of money by way of deposit or loan.