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Acceptance of deposits

Corporate & Other Laws

Amount that private company can raise from the members is 100 % But in the notes(by indigolearn) is different and class is different?

Swathi Krishna

CA Final

★ 8K+

02-Aug-20 14:11

383

Answers (2)

Private companies can accept deposits from members upto 100% of paid up share capital, free reserves and securities premium. Exception (max limits will not apply): Â (i) a private company which is a start-up, for five years from the date of its incorporation; (ii) a private company which fulfils all of the following conditions, namely:- (a) which is not an associate or a subsidiary company of any other company; (b) the borrowings of such a company from banks or financial institutions or any body corporate is less than twice of its paid up share capital or fiffy crore rupees, whichever is less ; and (c) such a company has not defaulted in the repayment of such borrowings subsisting at the time of accepting deposits under section 73