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Loan from minor in pvt. company

Sagar (AM) (123 Points)

23 April 2014

Dear All,

Request you to please advise, whether loan taken from minor(who is shareholder) in a private company earlier will now be considered as deposit under companies act 2013?

Also please advise what is the meaning of "any non-interest bearing amount received or held in trust" with an example please.

Thanks

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7 Replies

Sagar (AM) (123 Points)
Replied 23 April 2014

Request all to please advise

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Vandana J Doshi (Practising Company Secretary) (12562 Points)
Replied 23 April 2014

Hi,

in my view, the loan will be treated as deposits since the same has not been specifically excluded from the definition of deposits as given in Comapnies Acceptance of Deposits rules 2014.

Regards

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Sagar (AM) (123 Points)
Replied 23 April 2014

Thanks Vandana, Can u please also advise, can't we take shelter under exclusion mentioned in rule i.e "any non-interest bearing amount received or held in trust" if no interest is being paid to minor.

Vandana J Doshi (Practising Company Secretary) (12562 Points)
Replied 24 April 2014

Hi,

any non-interest bearing amount received or held in trust implies that if the company is acting in the capacity of a trustee aand has held any amount in trust..

In the new Act, there is no way in which u can exclude yourself from the liability is you have taken any amount from members until and unless you return it back.

In simple terms, loan from members is deposit..

Regards

Sagar (AM) (123 Points)
Replied 24 April 2014

Thank for the response.

But still fail to understand the meaning of ,any any non-interest bearing amount received or held in trust. Can you please quote some circumstances where company will be recieving such an amount.

Thanks