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Study the following case/situation and express your opinion. Moon Private Ltd. Company wants to raise funds through deposits: a. Can the company accept deposits from the public? - Secretarial Practice

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प्रश्न

Study the following case/situation and express your opinion.

Moon Private Ltd. Company wants to raise funds through deposits:

  1. Can the company accept deposits from the public?
  2. Which document should the company issue to invite deposits?
  3. What is the maximum period for which company can accept deposits?
मामले का अध्ययन
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उत्तर

  1. No, since Moon Pvt. Ltd. is a private limited company, it cannot accept deposits from the public. However, it is allowed to accept deposits from its members, directors, or relatives of directors.
  2. Moon Pvt. Ltd. must issue a circular when inviting deposits.
  3. The company can accept deposits for a maximum tenure of 36 months, that is, 3 years.
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