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Question
Justify the following statement.
Company has to fulfill certain provisions related to issue of circular or advertisement.
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Solution
- If a company invites deposits from its members, it issues a circular. But if it invites deposits from the public, the company has to issue an advertisement.
- The company has to file a copy of the circular or advertisement with the Registrar of Companies.
- The company can issue a circular or advertisement only after 30 days of filing a copy of the circular or advertisement with the Registrar of Company (ROC).
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Answer the following question:
Explain the provisions related to circular or advertisement for inviting deposits.
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