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Study the following case/situation and express your opinion. ABC Company Ltd. is an eligible Public Company as per the Companies Act, 2013 with reference to accepting Public Deposits. - Secretarial Practice

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Question

Study the following case/situation and express your opinion.

ABC Company Ltd. is an eligible Public Company as per the Companies Act, 2013 with reference to accepting Public Deposits.

Can the company issue secured deposits?

Case Study
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Solution

Yes. The company can issue secured deposits. If a company offers secured deposits, it has to create a charge on its tangible assets within 30 days of acceptance of deposits.

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Procedure for Accepting Deposits from Public
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Chapter 5: Deposits - Exercises [Page 92]

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