Referring to the provisions of Companies Act, 2013 (ACT), comment on the following: The amount lying in Deposit Repayment Reserve can be used to issue bonus share.
CS Executive · Company Law · PYQS · June 2024
Referring to the provisions of Companies Act, 2013 (ACT), comment on the following: The amount lying in Deposit Repayment Reserve can be used to issue bonus share.
Answer & Explanation:
As per Section 73 (5), the amount deposited in the deposit repayment reserve account shall not be utilized for any purpose other than for the purpose of repayment of deposits. Thus, the amount lying in Deposit Repayment Reserve cannot be used to issue bonus share.
Topics: Acceptance of Deposits
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