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Government company can collect deposits from its members.

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Question

Government company can collect deposits from its members.

Options

  • True

  • False

MCQ
True or False
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Solution

This statement is False.

Explanation:

Government Company can accept deposits from public not exceeding 35% of the paid up share capital and free reserves of the company.

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Terms and Conditions for Acceptance of Deposits
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Chapter 5: Deposits - Exercises [Page 90]

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When should a company file Return of Deposit? 


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Minimum tenure of a deposit.


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Maximum tenure of a deposit


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Agreement between company and Deposit Trustee.


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Time within which company has to issue deposit Receipt


State whether the following statement is true or false.

Deposit can be accepted for a maximum of 36 months.


Find the odd one.


Find the odd one


Arrange in proper order.
a. Obtain Credit Rating.
b. Entries in Register of Deposits.
c. Issue Deposit Receipt.


Explain the following term/concept.
Charge on tangible assets


Explain the following term/concept.
Deposit Insurance


Explain the following term/concept.

Deposit Repayment Reserve Account.


Answer in brief.
State the provisions regarding appointment of Deposit Trustee.


State any four terms and conditions regarding acceptance of deposit.


Justify the following statement.

Company has to fulfill certain provisions related to issue of circular or advertisement.


Answer the following question:
Explain the provisions related to circular or advertisement for inviting deposits.


Select the correct option from the bracket.

Group ‘A’ Group ‘B’
a) Retained earnings 1 ______
b)  ______ 2 Written communication
c) 36 months 3 ______
d) ______ 4 Charge on assets
e) Cash sales 5 ______

(Less working capital, Correspondence, Secured debentures, Internal source of finance, Maximum tenure of deposits.)


Study the following case/situation and express your opinion.

CC Company Ltd. is an eligible Public Company as per the Companies Act, 2013 with reference to accepting Public Deposits.
  1. Can the company accept deposits in joint names?
  2. Can the company accept deposits from its members?
  3. Can the company issue secure deposits?

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