who cam be a shareholder in a private company??
prithwish sengupta
(Querist) 10 June 2010
This query is : Resolved
who can be a shareholder in a private company???
Girish Vaghani
(Expert) 10 June 2010
Deposit taken by Pvt. Co. from members enjoys total exemption from the clutches of this section. Kindly note that as per the provisions of sec. 58A read with rule 2(b) of the Companies (Acceptance of Deposits) Rules, 1975 — amount received from its shareholders by a private company (provided the shareholder concerned furnishes at the time of giving the money to the company, a declaration that the amount is not being given out of funds acquired by him by borrowing or accepting from others) is not included in the meaning of deposit. If the depositor ceases to be a shareholder, the deposits made by him cease to qualify for exemption from the date of such cessation
as per the provisions of sec. 85 to 90, the restrictions relating to kinds of share capital, issue of shares with differential voting rights, etc. do not apply to Pvt. Co.
