E India CA

Professional Updates for Chartered Accountants

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Private Companies can now accept deposits from directors and relatives

Companies (Acceptance of Deposits) Second Amendment Rules, 2015

In exercise of the powers conferred by sections 73 and 76 read with subsection (1) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Acceptance of Deposits) Rules, 2014.

Without any upper limit of amount, now a private company can accept unsecured loans apart from director even from a relative (as per definition) of a director of the company with simple declaration saying the relative has not borrowed same from others. The relative need not be a shareholder of the company.

Click here to read the notification

Source: http://www.mca.gov.in/

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