20 May 2011
What are the penalties & consequences if a Private limited company is violated section 3(1)(iii)(d) by accepting unsecured loans fron individuals other than dirctors,members,shareholdrs & ther relatives?
20 May 2011
After the violation of sec 3(1)(iii)(d) the private company will not be continue as private company and from the date of violation it will be treated as public company. Beside the above there is also some penalties required to be made by the company.
20 May 2011
If a private company accept 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. Violation of section 58A attracts twice the amount of deposit as penalty.
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