Question
Public Companies can accept deposits from the public.

Answer

  • Public companies having a net worth of not less than ₹ 100 crores or a turnover of fewer than ₹ 500 crores can accept deposits from the general public.
  • A meeting has to be convened to get the approval of shareholders.
  • After consent, a special resolution has to pass and the same has to be filed with the Registrar.
  • Advertisements in newspapers have to be given to let people know regarding the acceptance of deposits.
  • Deposits thus can be accepted for a minimum period of 6 months and a maximum period of 36 months or 3 years.
  • Thus, it is rightly said, that public companies can accept deposits from the public.

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