Deposits accepted by private limited company from its shareholders - Companies Law - Letter : No. 4/2/76‑CL‑XIV,

Letter : No. 4/2/76 ‑ CL ‑ XIV, dated 18 ‑ 6 ‑ 1975. Subject:- Deposits accepted by private limited company from its shareholders Query : Whether the deposit accepted by the private limited company from its shareholders would attract the application of the Acceptance of Deposits Rules on the company becoming a deemed public company under section 43A. In case the rules become applicable to these deposits also and consequently the company is forced to refund the excess deposits, if any, would any time limit be available to the said company for effecting repayments ? Answer : The amounts which become deposits on account of a company becoming a public company under section 43A may be repaid in accordance with the terms of their acceptance.