Does the acceptance of deposits by a public limited company from its director attract compliance of any of the provisions of section 188?

Providing finance to the company may not be considered as or equated to sale of goods or materials to the company. So also, the same would not tantamount to supply of any services by a director to the company. The consent of the Board of directors pursuant to Section 188 would not be required. Whereas providing funds to the company may not be considered as a contract falling under Section 188, the same is definitely an arrangement in which director is directly or indirectly interested or concerned and therefore, the disclosure pursuant to Section 188 would invariably be required to be made to the Board of directors of the company. Even after disclosing his interest, the concerned director should not take undue advantage because his position is very much like that of a trustee as was held in 'Kailashnath vs. New Alok Ginning & Pressing Co. Ltd. (1950) 20 Comp Cos 225 (Nag)'