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Deposits from directors

If a private company cannot collect deposits from a director according to Acceptance of Deposits of Companies Rule, 2014 unless the director uses 3rd party's funds And there are no declarations , how can a company accept deposits with no limit as long as a declaration signed by the director is given(Rule 3)?


Sowmiya Paranan

Sowmiya Paranan

CA Inter

0

10-Jun-20

64

Answers (1)

Money from directors or relatives of directors does not come under definitions of deposits for the purpose of Sec 73, thus rule 3 does not affect monies received by the director. But, the condition for such exclusion is also given in sec 2(31) that defines deposits.


Lavanya Chitturi

Lavanya Chitturi

CA Inter

895

11-Jun-20

All the Best
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