Board Resolution for Non Acceptance of Public Deposit by nbfc company

[Preeti Gupta]

Dear Members,

Just wanted to get clarity with regard to this subject matter of RBI applicable to NBFC Companies- 

"Provided that the company passes in the meeting of its board of directors within thirty days of the issue of these directions and thereafter within thirty days of the commencement of the next financial year and each subsequent financial year, a resolution to the effect that the company has neither accepted public deposit nor would accept any public deposit during the year."

So my question is can we pass this resolution by circulation or it has to be passed at a duly convened meeting only.

Thank you

[Ayushi Bajaj]

Hii Preeti,

Yes, Circular resolution can be passed. Just ensure that while submitting the CTC of the resolution to RBI you also attach the approval of directors received for the resolution (either through mail or physically signed).

Regards,

CS Ayushi Bajaj