.
Meaning: -Section 58-A of the Companies Act, 1956
defines as “any deposit of money with, and includes any amount borrowed by a
company but shall not include such categories or amount as may be prescribed by
the Central Government in consultation with the Reserve Bank of India.
The
Following are the secretarial duties in connection with acceptance of deposits: -
1. Statutory
Requirements: -The
secretary should ensure that the deposits comply with the provisions of the
company Act and also the companies (acceptance of deposits) Rules. The
Provisions include
·
No
company with a net worth of Rs 1 crore can raise funds by way of public
deposits.
·
No
deposits can be accepted for a period of less than 3 months.
·
The
total amount of deposits that can be accepted by a company is limited to 35% of
the paid-up share capital and free reserves of the company.
2. Advertisement: -The secretary should get the text of the
advertisement ready, for inviting the deposits. The advertisement must contain
certain particulars such as:
·
Name
of the Company, Date of incorporation of the company, Business carried on by
the company and its subsidiaries, Brief particulars of the management of the
company,
·
Name
and address and occupation of the directors etc.
3. Publish
the Advertisement:
-The advertisement must be given in a leading English newspaper and in one
vernacular newspaper, circulating in the state in which the registered office
of the company is situated.
4. Application Form: -The secretary has to
prepare an application form to be submitted by the intending depositors.
Application form should contain the declaration by the depositors.
5. Statement
in lieu Advertisement:
-If the Company decides to accept deposit without invitation to the public
(i.e. accepting deposits privately), then the secretary should draft the
statement in lieu of advertisement.
6. Board
Meeting: - The
secretary should make arrangement to hold a board meeting to decide about the
following:
·
The total
amount of deposits, The rate of interest, Approval of the text of the
advertisement
·
The
names of newspaper in which advertisement will appear.
·
Opening
of bank accounts for collection of deposits
7. Filing
with Registrar: -A
copy of the advertisement (or statement in lieu of advertisement) signed by a
majority of the Directors to be filed with the ROC before publication of the
advertisement.
8. Arrangement
to issue Receipts:
-The secretary has to arrange to issue a receipt contains the prescribed
details on acceptance.
9. Bank
Account: The secretary
has to make arrangement with bankers, requesting them to collect the deposits,
issue a receipt and keep the deposits in a separate account.
10. Scrutiny
of Application Forms:
-All application forms must be scrutinised. The secretary has to see that
application forms are complete and correct in all respect.
11. Depositors
List: -The secretary
has to prepare depositors list. A separate list of small depositors must be
prepared.
12. Board
Resolution: -The
secretary requests the directors to adopt the resolution for accepting deposits
and authorising the secretary to issue receipts.
13. Issue
of Receipts: -The
secretary has to prepare receipts for every deposit received. The receipt must
be issued within 8 weeks from the
date of receipt of money.
