Deposits not to be invited without issuing an advertisement - Notified companies to which provisions of section 58A shall not apply - GSR NO. 73(E), - Companies Law

NOTIFICATION NO. GSR NO. 73(E), DATED 2-2-1996, ISSUED BY THE DEPARTMENT OF COMPANY AFFAIRS, MINISTRY OF LAW, JUSTICE AND COMPANY AFFAIRS Subject:- Deposits not to be invited without issuing an advertisement - Notified companies to which provisions of section 58A shall not apply G.S.R. NO. 73(E).- In exercise of the powers conferred by sub-clause (ii) of clause (a) of subsection (7) of section 58A of the Companies Act, 1956 (1 of 1956) and in supersession of the notification of the Government of India in the Ministry of Industry, Department of Company Affairs number GSR 48(E) dated 21-1-1986, except as respects things done or omitted to be done before such supersession, the Central Government, after consultation with the Reserve Bank of India, hereby specifies the following companies as the companies to which the provisions of section 58A of the Companies Act, 1956, shall not apply, namely: Companies which are Small Scale Industrial Units and fulfil the following conditions, namely: (a) The paid-up capital of the company does not exceed Rs. 25 lakhs; (b) The company accepts deposits from not more than 100 persons; (c) There is no invitation to public for deposits; and (d) The amount of deposits accepted by the company does not exceed Rs. 20 lakhs or the amount of its paid-up capital, whichever is less. Explanation : For the purpose of this notification (i) "deposit" has the same meaning as in clause (b) of rule 2 of the Companies (Acceptance of Deposits) Rules, 1975. (ii) a "Small Scale Industrial Unit" means any industrial undertaking registered with the Directorate of Industries of Small Scale Industries, as the case may be, of the State Government and in respect of which the investment in plant and machinery is not in excess of 60 lakhs of rupees in value.