Procedure of Acceptance of Deposits
Teena
(Querist) 01 December 2009
This query is : Resolved
My private company is converted into public Company can anyone tell me what is the procedure for accepting Public Deposit.
prakash vathore
(Expert) 01 December 2009
first of all u have to register ur company and have to obtain the certificate of incorporation. after obtaining the certificate of incorporatin there are certain formalities which ur company has to follow. then u can issue shares in the market. serch google
Arul Kumar
(Expert) 01 December 2009
On conversion of Pvt. Ltd. to Public Ltd. co. you can accept public deposit as permitted by the Article of Association of the Company and with prior premission from the Registrar of Companies.
Raj Kumar Makkad
(Expert) 01 December 2009
Companies Act is very clear on such aspect. Your article shall work now being converted as public limited company. It permits you to accept the deposits from company. You might have completed all formalities prior to conversion in this respect. Nothing special permission is required in such matter.
Manish Singh
(Expert) 01 December 2009
since the company has become a public ltd, you are free to accept public deposit but with certain conditions and obligations which regulates the acceptance of public deposit. apart from the Companies Act, 1956 the same is regulated by the Companies (Acceptance of DEposit) Rules, 1975. Also, there are some regulation made by the RBI which you are bound to follow.
invitation can only be made by advertisement vide specifying all the necessary information as per the requirements of the rules and acts. Public deposit can be accepted only till certain limit and not otherwise. interest to be paid shall be subject to regulations. register has to be maintained.
also go through the companies amendment act, 2000 which has provisions for small depositors.
