In the New Companies Act, there is a restriction on Private Companies from accepting deposits from members.
This was stayed for some time to offer relaxation. Does anyone know the current status in this issue?
3 Replies
Hashim Wafa
(Corporate Law Professional)
(34 Points)
Replied 26 July 2014
As per the CA 2013 private company cannot accept deposit/loan from members
prakash
(Company Secretary)
(1352 Points)
Replied 27 July 2014
Private Limited Companies can accept deposits from its members by complying with section 73 of the Companies Act, 2013
CHANDRA SEKHAR
(COMPANY SECRETARY)
(34 Points)
Replied 31 July 2014
Both the view are correct. Amount received from member is treated as public deposit under secction 73.. Hence, if the company wants take the money from shareholders, then need to comply with section 73 read with relevant rules.
If the amount is exempted, then the compliance of section 73 is not required. Say amount recevied from director is not a deposit subject to certain restriction.
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