TMI BlogAcceptance of deposits by companies.X X X X Extracts X X X X X X X X Extracts X X X X ..... the date of deposit or renewal, as the case may be, subject to the condition that such deposits (i) shall not exceed ten per cent of the aggregate of the paid up share capital and free reserves of the company, and (ii) are repayable not earlier than three months from the date of such deposit or renewal thereof, as the case may be: [3] [Provided further that where a company has before the 1st day of April, 1978, accepted any deposit repayable after a period of more than thirty-six months, such deposits shall unless renewed after the said date, be repaid in accordance with the terms of such deposit]; [4] [(c) no company shall invite or accept or renew any deposits in any form, on a rate of interest exceeding [ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany from its shareholder) or any deposit guaranteed by any person who, at the time of giving such guarantee is a director of the company, if the amount of any such deposit together with the amount of such other deposits of all or any of the kinds of deposits referred to in this clause and outstanding on the date of acceptance or renewal of such deposit exceeds ten per cent [including any deposit accepted under the proviso to sub-rule (1) of rule 3] of the aggregate of the paid up share capital and free reserves of the company: Provided that for the purpose of calculation of the amount of deposits outstanding on the date of such acceptance or renewal, any deposit guaranteed by a person who, at the time of giving such guarantee was the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tstanding deposits, is within the limits specified in this rule.] [14] [Explanation. For the purpose of this rule in arriving at the aggregate of the paid-up share capital and free reserves of a company, there shall be deducted from the aggregate of the paid-up share capital and free reserves as appearing in the latest audited balance sheet of the company, the amount of accumulated balance of loss, balance of deferred revenue, expenditure and other intangible assets, if any, as disclosed in the said balance sheet; "Government company" means a company as defined in section 617 of the Companies Act, 1956.] ---------------------------------------------- Notes;- [1] Substituted for clauses (a) and (b) by the Companies ..... X X X X Extracts X X X X X X X X Extracts X X X X
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