Contact us   Feedback   Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

ACCEPTANCE OF DEPOSITS BY COMPANIES - Proposed Amendments in the Companies Act 2013

News and Press Release - Dated:- 2-2-2016 - Prohibition on Acceptance of Deposits by Companies 5.1 Companies accepting deposits from their members or the public, are required to comply with the requirements of Section 73(2)(c) and 73(5), that is, of keeping an amount not less than fifteen percent of the amount of its deposits maturing during a financial year and the next financial year, deposited and kept in a scheduled bank in a separate bank account to be called as the deposit repayment reserv .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ancial year should be changed to not less than twenty percent of the amount of deposits maturing during that financial year, which would mitigate the difficulties of companies, while continuing with reasonable safeguards for the depositors who have to receive money on maturity of their deposits. 5.2 The Committee has also noted that Section 73(2)(d) mandates a company accepting deposits to provide for deposit insurance in the manner and extent as is prescribed in Part 5 of the Companies (Accepta .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

as banks with particular reference to their financial efficiency and delivery of commitments. It was also noted by the Committee that as on date none of the insurance companies is offering such insurance products. Considering the above situation, the Committee felt that the provisions of Section 73(2)(d) along with relevant Rules be omitted. 5.3 On a related note, Section 73(2)(e) requires a certification from the company that no default has been committed in the repayment of deposits, accepted .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ting further deposits should apply indefinitely only to a company that had not rectified/made good earlier defaults. However, in case a company had made good an earlier default in the repayment of deposits and the payment of interest due thereon, then it should be allowed to accept further deposits after a period of five years from the date it repaid the earlier defaulting amounts with full disclosures. 5.4 The suggestion to allow private companies engaged in the infrastructure sector to take de .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version