Is section 73 applicable to private companies?

In a notification of exemption, specifications dictate that provisions under section 73 of the Act will not be applicable to private limited companies accepting deposits from their members which amount to less than 100% of the paid up share capital of the company, as well as, the free reserves.

What is Section 73 of the Companies Act, 2013?

Section 73(3) states that every deposit accepted by a company under sub-section (2) shall be repaid with interest in accordance with the terms and conditions of the agreement referred to in that sub-section.

Can a private company accept deposits?

The provisions of Section 73(2) of the Companies Act, 2013 read with Rule 3 (3) of the Companies (Acceptance of Deposits) Rules, 2014, restrict a company to accept or renew any deposits from its members, if the amount of such deposits together with the amount of other deposits outstanding as on the date of acceptance …

Which type of company is prohibited from accepting deposits from general public?

Banking Company
Prohibition on Receiving of Deposits from Public A Banking Company.

Is MGT 14 exemption for private companies?

In brief, private companies are exempted from filing MGT-14 with the ROC on various provisions under Section 179(3) and Rule 8 of the amended Companies (meetings of board & its powers) Rules, 2014.

What are the disadvantages of a private company?

There are also some disadvantages:

  • Private companies are subject to many legal requirements.
  • They are more difficult and expensive to register compared to a Sole Proprietorship.
  • At least one director is required.
  • Shares may not be offered to the public and cannot be listed on the stock exchange.

What is the section 73 and 74?

Sections 73 and 74 of Contract Act contemplates that in a contract the party who suffers by such breach is entitled to receive compensation for any loss which naturally arises in the usual course of things from such breach.

Which item Cannot be passed by circulation?

However, other business that requires urgent decisions can be approved by means of Resolutions passed by circulation. Resolutions passed by circulation are deemed to be passed at a duly convened Meeting of the Board and have equal authority. LIST OF RESOLUTION CAN’T BE PASSED BY CIRCULATION: S.

Can Private Company accept deposits from the public a yes b no?

The Companies Act, 2013 allows only banking companies, non-banking financial companies, housing finance company and company specified by the Central Government to accept invite, accept or renew deposits from the public. Therefore, private limited companies are strictly prohibited form accepting public deposits.

Can Private Company go for public issue Yes or no?

A Private Company is Prohibited under Section 2(68) to issue shares to the public by way of Public Issue in addition to that even Section 23 does not allow Private Companies to offer shares by way of Public Issue.

What is the maximum period for accepting deposits?

The maximum period for which a bank deposit can be kept is for 20 years.

Can RBI accept deposit from public?

The RBI provides loans to scheduled banks and financial institution. Thus, The RBI does not accept deposit from the public. Actually, the commercial banks in the country accept the deposits from the public. Also commercial bank plays an actual function of bank.

Which is a company under Section 73 of the Companies Act?

( iii) a housing finance company registered with the National Housing Bank established under the National Housing Bank Act, 1987 (53 of 1987); and ( iv) a company specified by the Central Government under the proviso to sub-section (1) of section 73 of the Act.

What are the rules under the Companies Act 2013?

* Clarification with regard to creation of deposit repayment reserve of 20% u/s. 73 (2) (C ) of the companies Act 2013 and to invest or deposit 15% of amount of debentures u/r.18 of Companies (Share capital and Debentures) Rules 2014 – COVID-19 – Extension of time 4.

Is the Companies Act 2006 up to date?

Companies Act 2006, Section 73 is up to date with all changes known to be in force on or before 08 July 2021. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Revised legislation carried on this site may not be fully up to date.

When does the Companies Act 2017 take effect?

4. Substituted by the Companies (Amendment) Act, 2017 – Amendment Effective from 5th July 2018