Study the following case/situation and express your opinion.

1. Apple Company Ltd. plans to raise funds through Public Deposits. It’s net worth is Rs 10 Crores.
a. Can they accept deposits from the public ?
b. Can they accept deposits which matures after 4 years.
c. Within what period should the company issue deposit Receipt to it’s depositors ?
Ans:
(a) No, they cannot accept deposits from the public. As per the rule, any public company having a net worth of Rs 100 crore or more can accept deposits from the public. In fact, this company can accept deposits from its members or directors.
(b) As per the rules, the deposit period should not less than 6 months and more than 36 months. Thus, they cannot accept deposits which matures after 4 years.
(c) The company should issue Deposit Receipt to the depositors within twenty-one (21) days from the date of receipt of money or realization of cheque. The receipt has to be signed by the officer duly authorized by the Board of Directors.

2. ABC Company Ltd. is an eligible Public Company as per the Companies Act, 2013 with reference to accepting Public Deposits.
a. Can the company accept deposits in joint names ?
b. Can the company accept deposits from it’s members ?
c. Can the company issue secured deposits ?
Ans:
(a) Yes. The company can accept deposits in the joint names of depositors. But there should not be more than 3 names.
(b) ABC Company Ltd. is an eligible Public Company as per the Companies Act, 2013. Thus, it can accept the deposits from its members as well as from public.
(c) Yes. The company can issue secured deposits. If a company offers secured deposits, it has to create a charge on its tangible assets within 30 days of acceptance of deposits.

3. Apple Company Ltd. is an eligible Public Company. It plans to raise secured deposits
from the public. Please advice its Board on the following.
a. Does the company need to get shareholders approval for accepting deposits ?
b. Does the company have to appoint a Debenture Trustee ?
c. Within what period should the company create a charge on it’s assets ?
Ans:
(a) Yes. The company needs to get shareholders’ approval for accepting deposits. For this, the Board of Directors can pass a resolution in a general meeting for the approval of accepting deposits
(b) Yes. The company has to appoint a Debenture Trustee. This is because, if the company wants to issue secured deposits, then it is compulsory to appoint a Debenture Trustee.
(c) The company has to create a charge on its tangible assets within 30 days of acceptance of deposits.

4. SUN Pvt. Ltd. company wants to raise funds through deposits.
a. Can the company accept deposits from the public ?
b. Which document should the company issue to invite deposits ?
c. What is the maximum period for which they can accept deposits ?
Ans:
(a) No, the company cannot accept deposits from the public. This is because SUN Pvt. Ltd. is a private limited company and it cannot accept deposits from the public. Only eligible public companies and government companies can accept deposits from the public.
(b) In the above case, SUN Pvt. Ltd. is a private limited company. Thus, it should issue a circular to invite deposits from its members.
(c) The maximum period of accepting deposits is 36 months. Thus, it can accept deposits for a maximum period of 36 months.