Question

XYZ company prohibits the acceptance of deposits from persons except directors, members or relatives is a

• A. Public limited company
• B. Private Limited Company.
• C. Government company.
• D. None of the above

Answer 1

The correct option is B Private Limited Company.

Private Company is prohibited to accept any invitation or acceptance of unsecured loans/deposits from the persons other than its members, directors or their relatives. Therefore a private company can accept deposits through private arrangement from its members, directors and their relatives.