Sources of Corporate Finance — Secretarial Practice STD 12 Commerce / Arts — Question
Maharashtra BoardEnglish MediumSTD 12 Commerce / ArtsSecretarial PracticeSources of Corporate Finance4 Marks
Question
Public Companies can accept deposits from the public.
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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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