Difference between borrowing and deposit

[Surabhi Jain]

What is the basic difference between borrowing and deposit of money?

According to sec 2(31) deposit includes any receipt of money by way of deposit or loan or in any other form.

The definition of borrowing is not mentioned in the companies act, 2013. Moreover the provision regarding borrowing is mentioned only in section 179 i,e powers of the board and no other specific section is mentioned about it.

Further the provisions for Deposits are mentioned in Section 73.

So, accordingly can a private company borrow money from its director and its interested party without any limit?

Moreover which section should be referred to in respect of borrowing of loans of a private company?

Regards,

CS Surabhi Jain

[sravanthi g]

Section 180 has to be referred with respect to borrowings.

Thanks & Regards,

CS Sravanthi Raviteja

--
--
************************************************
Mail your comments, feedback and suggestions on CSMysore to Moderator: datta...@gmail.com and Manager: vivekhe...@gmail.com
---
You received this message because you are subscribed to the Google Groups "CSMysore" group.
To unsubscribe from this group and stop receiving emails from it, send an email to csmysore+u...@googlegroups.com.
For more options, visit https://groups.google.com/d/optout.

[Pankaj CS]

I must suggest you to read An Article directly relating to your query for definition of deposits in dec. 15 issue of chartered secretary.

Regards,
Pankaj

[Surabhi Jain]

Sir,

Section 180 is not applicable to private company as notified on 05.06.2015

Should the section be totally omitted or only the requirement of special resolution is exempted.

Now if the company exceed the limit of borrowing as mentioned under section 180,  will only the board resolution comply with provision?

And can a private company borrow money from any person?

You received this message because you are subscribed to a topic in the Google Groups "CSMysore" group.
To unsubscribe from this topic, visit https://groups.google.com/d/topic/csmysore/mSe058BWUAo/unsubscribe.
To unsubscribe from this group and all its topics, send an email to csmysore+u...@googlegroups.com.

[sravanthi g]

Board resolution is sufficient. You can borrow, but need to comply with deposit rules. Hence you can take only from companies, directors and shareholders.

Other views solicited. 

Thanks & Regards,

CS Sravanthi Raviteja

[Surabhi Jain]

ThankYou Sir