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    Acceptance of Deposit by companies

    Posted By : Sarah Bhandari / Published on : 28-Jun-2018 11:53 PM / View : 691 / Comment : 1

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    In terms of Section 73 of Companies Act, 2013 read with Rule 2(1)(c)(vii) of Companies (Terms and conditions of acceptance of Deposit) Rules, 2014, deposits do not include receipt of money from Director of the Company, but the money received from a member is treated as a deposit. In case the deposit is taken from a person who is both a director and a member of the Company, will such receipt of money be treated as a deposit or not?
    Read more on : companies deposit acceptance

    • Yes

      In my view, If a Person is a Shareholder as well as Director of the Company and he gives money to the Company, then it should be treated as Deposit because there is No such specific exclusion in Section 73 of the Act.

      But, if a Director is holding shares allotted under a Scheme of ESOP, then the amount given by Director to the Company should not be treated as Deposit.

      17-04-2019 / 08:30:13 AM
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