Discuss and decide with reference to the provisions of the Companies Act, 2013 and the rules made thereunder, whether the following shall be considered as 'deposits' accepted by a private company: (ii) A company has acce
CS Professional · Advanced Company Law and Practice · PYQS · December 2016
Discuss and decide with reference to the provisions of the Companies Act, 2013 and the rules made thereunder, whether the following shall be considered as 'deposits' accepted by a private company: (ii) A company has accepted ₹50 lakh by means of inter-corporate deposits.
Answer & Explanation:
(ii) In the given case, inter corporate deposits are accepted which are not covered in the definition of deposits. Hence, the said inter-corporate deposits would not be treated as deposit since it is specifically excluded vide Rule 2(1)(c)(vi) of the Companies (Acceptance of Deposits) Rules, 2014.
Topics: Acceptance of Deposits
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