Question

A company can accept depisits from existing shareholder and debenture holders upto

Answer 1

Companies Act, 2013, initially laid down a kind of prohibition for acceptance of deposit which was later relaxed through various amendments and providing crucial exemptions to private companies. Private Companies can now accept deposits from its member with minimum regulatory compliances.

Before moving towards the regulatory requirements for accepting deposits by the Company, it must be clear what is Deposit and what are excluded from the ambit of deposit or not termed as deposit.