CS Divesh Goyal
Sec- 76 of Companies Act 2013
1. Call Board Meeting:
- To pass resolution for acceptance of deposit from members
- Approve Draft DPT-1 (Circular)
- Appoint a Trustee
- Call General Meeting
- Authorize Director or Secretary for further process
2. Call General Meeting
- Pass Ordinary Resolution for acceptance of deposit, if deposit with in limit of section 180(1)(c )
3. File form MGT-14 with ROC within 30 days of passing of resolution:
- Attach Notice, Minute and CTC of Resolution
4. File DPT-1 with ROC at least 30 days before issue of circular, signed by BOD or Person Authorize by Board.
5. Enter into contact with Insurance Company at least 30 days Before issue of Circular.
6. Execute Deposit Trust Deed at least 7 days before issuing of circular.
- Issue Circular (DPT-1) to members through registered post, courier or through Electronic mode.
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Issue circular in DPT-1 through advertisement also (in one English News Paper and one Vernacular Language).
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Put Copy of Advertisement on website of company, if any.
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Within 21 days of Acceptance of Deposit company will issue receipt of Deposit to Depositor. Receipt will be signed by Person Authorized by Board of Director.
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Make Entry in register within 7 days of issue of receipt.
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Company will create charge on assets of company equal to amount of deposit unsecured by insurance.
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File CHG-1 within 30 days of Creation of Charge.
NOTE:
- Public Company can accept deposits from members up to 10% of paid-up share capital + Free reserve.
Public Company can accept deposits from Public up to 25% of paid-up share capital + free reserve.
Company before 30th April each will deposit at least 15% of amount of deposit, whether secured or unsecured, maturing during the year or next financial year in deposit repayment reserve account, maintain with Schedule Bank.
Company Before 30th June every year will file DPT-3 with ROC, containing information there in as on 31st March, duly audited by Auditor of company.
No trustee can be removed after the issue of circular/advertisement and before the expiry of his term except with the consent of all the Directors Present at a meeting of Board.
T & C of Deposit cannot be altered after the issue of circular/ Advertisement or acceptance of Deposit.
A panel Rate of Interest 18% shall be payable on non-payment of matured deposits.
(Author can be reached at csdiveshgoyal@gmail.com)
Author Bio
I request Tax Guru To convey and convince the lawmakers that such provisions would cause irreparable damage to fabrics of traditional family run private companies.
I understand that Even Private limited companies have been prohibited to accept Loans from anyone except its directors. It can borrow only from directors. Earlier, a private company could accept Loans from its Directors, relative of Directors and shareholders (members).
The above provision has been enacted by earlier UPA government without application of mind and will definitely prove to be lethal and render closure of most of private limited companies. Such a Draconian provision should immediately be dropped.
The Provisions state that all Loans (already taken) have to be repaid within a year by 31st march 2015. Isn’t it ridiculous?
a) Is it possible to repay when money is already invested in Business, Plant and Machinery, Working Capital etc.
b) Could government make any Bank to pay all deposits and square off all deposit accounts once in a year only?
c) Leave aside the Bank, Can Government of India repay all loans (taken from various sources) in one year.
THE EXPECTED RESULT: THIS PROVISION WILL CERTAINLY KILL LAKHS OF PRIVATE LIMITED COMPANIES / SMALL BUSINESSMEN AND FORCE THEM TO CLOSE THE COMPANY.
In fact the need of the hour is that Indian government must stop taking loans from any sources and save citizens of the country to become slaves of mounting Debt on India OR make a law that Indian government should take loans from Indian Citizens only. No loan should be taken from foreign country because foreign loan are creating economic slavery as loan giving country carry upper hands and influence laws of India which results in such draconian laws which benefits them at the cost of Indian Business.
It is a Joke that there is penalty of minimum Rs.1 crore (Max.10 crore) if company fails to repay deposits in stipulated time. It is a pity that Lawmakers do not know even basic reality that an average private company will hardly be having a capital of 1 crore. India is fed up of such redundant, outdated and impractical acts and laws which have not helped people but has proved to keep businessmen in stress.
They (Lawmakers) did not even consider that relatives and shareholders give loans to private company because they trust them more than Banks, more than government, get better interest, and are more comfortable with them. On the other side, private companies get such loans on reputation of directors whenever required which help them to save on costs and grow business.
I want to ask a question to Law makers: We are Directors of a company (Husband and wife). We have taken loans from our relatives and shareholders. Our relatives are my brother, Father, Mother, sister and also my wife’s relatives. They are very comfortable with their money invested in our company and have been getting their regular interest for last 20 years. Even shareholders have given us loans on our reputation. Lawmakers must understand that in Indian context, private companies are family run businesses and there are entrepreneurs who can get crores of loans without any security at very competitive rates, while they will not prefer or get even few lakhs from Banks.
It is also unconstitutional that when my relatives want to loan to my company and our company needs money for business, how can law be made to prevent us? Even shareholders of private companies give loans on director’s reputation and do the same out of mutual relationships with directors.
This Devil law has been enacted by earlier government without considering ground reality of India. I hope and request new government to drop it and restore earlier situation.