19 December 2013
Hi Can a private ltd company get deposit from other then Directors, If not then can they be made only shareholder and not directors and without voting rights or without any interference in working of company and its decision making process.
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.
19 December 2013
i want to know how to accept deposits form a person with out involving him in company affairs. As you have already told me i can not accept deposits from other then member/Shareholder or their relatives.
As the persons who are ready to investment in the company only against Shares.
CAclubindia
