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Government company can collect deposits from its members. - Secretarial Practice

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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]

RELATED QUESTIONS

Answer in one sentence.
When does a company create charge on it’s tangible assets?


When should a company file Return of Deposit? 


Write a word or a term or a phrase which can substitute the following statement.
A company which can accept deposits from its members, directors, or their relatives not exceeding 100% of aggregate of paid up share capital and free reserves.


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Book which contains details of deposits accepted or renewed.


Return of deposit must be filed every year on or before 31st March.


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A private company can collect deposits from public.


State whether the following statement is true or false.

For secured deposits, company has to create a charge on its tangible assets.


State whether the following statement is true or false.

Deposit Receipt is issued within 21 days of receipt of deposits.


Find the odd one.


Complete the sentence:
Account which is used only for repaying deposits is called ______.


Correct the underlined word and rewrite the following sentence.
Company issues advertisement to invite its members for subscribing to its deposits


Arrange in proper order.
a. Appoint Deposit Trustee.
b. Hold General Meeting.
c. Create charge on assets.


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.


Justify the following statement.

Companies have to create a charge on their tangible assets while issuing secured deposits.


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