Public Deposits - Acceptance of ‑ Scope and provision of Companies (Acceptance of Deposits) Rules, 1975 - Companies Law - Circular : Nos. 1/80

Circular : Nos. 1/80 [1/1/80 ‑ CL ‑ V and 7/33/78 ‑ CL ‑ X], dated 4 ‑ 5 ‑ 1980. Subject:- Public Deposits - Acceptance of ‑ Scope and provision of Companies (Acceptance of Deposits) Rules, 1975 explained Rule 2(b)(ix) : WHETHER DEPOSITS RECEIVED IN JOINT NAMES OF DIRECTOR AND NON ‑ DIRECTOR/SHAREHOLDER AND NON ‑ SHAREHOLDER FALL WITHIN THE PURVIEW OF THE RULE In supersession of this Department s Circular No. 32/76 [Letter No. 4/20/76‑CL‑X and No. 1/1/76‑CL‑V], dated 28‑9‑1976, it is hereby clarified that the amount received by a company in the joint names of a director and a non‑director or in the case of a private company in the joint names of shareholder and a non‑shareholder will not fall within the purview of rule 2(b)(ix) of the Companies (Acceptance of Deposits) Rules, 1975. It is also clarified that if all the partners of a lending firm are not directors on the board of directors of the borrowing company, the deposits accepted from such firms will not fall within the purview of rule 2(b)(ix).