Limit on Deposits from director/members of a private company

[Nihar]

Dear Members,

Is there any limit on Private Company for accepting any deposits
against an unsecured debenture or any deposit from a shareholder,
under Companies Act, 1956 or Companies (Acceptance of Deposits) Rules,
1975?


Does the limit of 10% / 25% under rule 2 (i) and (ii) of Companies
(Acceptance of Deposits) Rules, 1975 apply to a private company too?


In case there is no limit and only the declaration under the rules is
the only compliance needed, pls provide the format for the same.

Thank You.

[kameswara Rao Kappagantula]

Practically there is no limit for Unsecured Loans received by a Private Company from its Members and Directors and relatives of Directors.

 

The Limits as mentioned in Rules is applicable for which are amounting to Deposits........i. e i mean which are not comes under exmepted category of deposits

 

Kamesh

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[renukameera91]

On Thu, Feb 16, 2012 at 2:40 PM, Nihar <nihar....@gmail.com> wrote:

Dear Members,

Is there any limit on Private Company for accepting any deposits
against an unsecured debenture or any deposit from a shareholder,
under Companies Act, 1956 or Companies (Acceptance of Deposits) Rules,
1975?

Dear Friend,

A Pvt ltd co can   take unsecured loan from its shareholders, directors and their relatives and the same would not be covered u/s, 58A and other deposit provisions as such transaction is exempted by deposit rules 1975.  

With Regards,

C.Renuka

Does the limit of 10% / 25% under rule 2 (i) and (ii) of Companies
(Acceptance of Deposits) Rules, 1975 apply to a private company too?


In case there is no limit and only the declaration under the rules is
the only compliance needed, pls provide the format for the same.

Thank You.

[Nihar Mohapatra]

Thank you for the reply, i have checked and the rule 2 (ix) has given clear exemption in regard to this to private companies, subject to declaration.