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State whether the following statement is true or false. Eligible public company can collect deposits from public not exceeding 35% of its paidup share capital and free reserves. - Secretarial Practice

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Question

State whether the following statement is true or false.

Eligible public company can collect deposits from public not exceeding 35% of its paidup share capital and free reserves.

Options

  • True

  • False

MCQ
True or False
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Solution

False

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

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RELATED QUESTIONS

When should a company file Return of Deposit? 


Select the correct answer from the options given below and rewrite the statement:
Deposit is a type of ______________________.


Return of deposit must be filed every year on or before ______.


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.


Write a word or a term or a phrase which can substitute the following statement.
Time within which company has to issue deposit Receipt


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


State whether the following statement is true or false.

Deposit can be accepted for a maximum of 36 months.


Complete the sentence:
Agency which gives ratings of the deposits of a company is called ______________.


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


Correct the underlined word and rewrite the following sentence.
Charge on assets is created when company issues unsecured deposit.


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


Explain the following term/concept.

Secured Deposit


Explain the following term/concept.
Charge on tangible assets


Justify the following statement
While issuing secured deposits, company has to appoint Deposit Trustee.


Justify the following statement.

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


Arrange in Proper Order:

(a) Payment of Deposits

(b) Deposit Receipt

(c) Acceptance of Deposit


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