Question

As per Companies Act, 2013 a private company can _________.

• A. accept deposits
• B. can not accept deposits
• C. can not have more than 50 members
• D. all of the above

Answer 1

The correct option is A accept deposits

A private company may, subject to the passing of a resolution in general meeting may accept deposits from its members. It is clear that in case of private companies, deposits from public can’t be accepted in any situation. Money accepted from directors and relatives of the directors of the company, is not considered as deposits so a private company can accept money from directors without attracting the provisions of deposits.