Whether employees and ex‑employees could be regarded as persons not falling within the meaning of the expression “Public”. - Companies Law - Circular : No. 8/48/84‑CL‑X,

Circular : No. 8/48/84 ‑ CL ‑ X, dated 18 ‑ 12 ‑ 1984. Subject:- Public Deposits - Public - Meaning of ‑ Whether employees and ex ‑ employees could be regarded as persons not falling within the meaning of the expression Public occurring in section 58A(1) It has come to the notice of this Department that some companies are under the mistaken impression that employees and ex‑employees are to be regarded as persons not falling within the meaning of the expression public occurring under section 58A(1) and the deposits accepted from the aforesaid categories of persons would be outside the scope of the provisions of section 58A and the rules framed thereunder. The matter has been examined in great detail and the Department is advised that as per its normal connotation, the expression public includes a section of the public also. It is, of course, permissible for the Legislature to exclude a certain section from the ambit of the expression public . As a matter of fact, sub‑section (1) of section 58A makes a distinction between the public and members of the company. However, neither sub‑section (1) nor sub‑section (2) of section 58A of the Act excludes from its ambit the employees of the company. It is, therefore, reiterated that the employees and ex-employees are also to be regarded as those falling in the category of public and the deposit accepted from them would as much attract the provisions of section 58A and the rules made thereunder as deposits from other categories of Public .