Deposits Under Company’s Act 2013 – Sec 73, 74, 75 & 76. we are providing complete details deposits Under Company’s Act 2013 it is covered under section 73, 74, 75 & 76. this article is relevant for CA Students, CS Students & for CMA Students. In this article you can find complete details for Deposits Under Company’s Act 2013 – Sec 73, 74, 75 & 76 like – situations are there for accepting Deposits, Conditions for Accepting deposits from members, Conditions for accepting deposits from public (only Eligible company), Punishment for contravention etc. Now you can scroll down below and check complete details regarding Deposits Under Company’s Act 2013 – Sec 73, 74, 75 & 76
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Deposits Under Company’s Act 2013 – Sec 73, 74, 75 & 76
3 situations are there for accepting Deposits:-
- Private company
- Public company
- Eligible public company
|Private Co.||Public Co.||Eligible public Co.|
|Can accept from director(no limit)||Can accept from director (no limit)||Director (no limit)|
|Members(conditions)||Members (conditions)||Members (conditions)|
Conditions for Accepting deposits from members
- It is covered U/s 73
- OR in GM
- CIRCULAR to members statement showing the financial position +credit rating +total number of depositors + amount due.
- Copy of circular to ROC within 30
- Maintenance of liquid asset (deposit repayment reserve account) 15% of (current year + next year) in schedule bank in a separate bank account.
- Deposit insurance policy to be taken.
- Certification by the co àthat it has not committed any default in repayment of deposit.
- Create security in favour of the depositor (if unsecured then shall be quoted in every circular)
Conditions for accepting deposits from public ( only Eligible company)
- It is covered u/s 76
- ELIGIBLE COMPANYà Company having net worth ≥ 100 Crore or turnover ≥ 500
- SR in GM
- File with ROC
- Credit rating at the time of inviting deposit & shall be obtained every year during the tenure of deposit.
- Create a charge within 30 days of an amount not less than the amount of deposits.
- Advertise in 2 news paper
- Maintenance of liquid asset*
- Max cap on depositàpublic co 25% of paid up share capital + free reserve. Government co 35% of paid up share capital + free reserve.
- Public co can deposit from shareholder max 10% of paid up share capital + free reserve. But at any point of time deposit cannot exceed 25% of paid up share capital &free reserve
Punishment for contravention:-
- It is covered u/s 75.
- If a co defaults then every officer of the company who is associated shall be liable u/s
- Depositor can file CLASS ACTION SUIT against the co.
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