Secretarial Practice · Class 12 Commerce
Ch 5Deposits — Class 12 Secretarial Practice, concept-first.
A joint stock company does not always want to commit itself to permanent share capital, and it is not always able to offer the security a bank or a debenture-holder might insist on.
Key concepts
Hover a concept to preview it and jump to its most relevant Q&A.
Meaning of Deposit
Section 2(31) of the Companies Act, 2013 defines 'deposit' inclusively as any receipt of money by a company by way of deposit, loan, or in any other form, but excludes categories of amount the Companies (Acceptance of De…
Most relevant Q&A
- What do you mean by 'Deposit'? Explain the categories of amount excluded from the definition of deposit under the Companies Act, 2013.Free
- The term 'Deposit' is defined under Section ____ of the Companies Act, 2013. (a) 73 (b) 74 (c) 2(31) (d) 76Free
- Depositors are given voting rights. (a) True (b) FalsePreview
- Correct the underlined word and rewrite the following sentence. Deposit is a **long** term source of capital.Preview
Chapter contents
The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.
Meaning and Nature of a Deposit
A joint stock company does not always want to commit itself to permanent share capital, and it is not always able to offer the security a bank or a debenture-holder might insist on.
The General Prohibition and Acceptance of Deposits from Members — Section 73
Section 73(1) of the Companies Act, 2013 lays down a blanket prohibition: no company shall invite, accept, or renew deposits from the public except in accordance with the manner provided in this Chapt…
Deposits from the Public by Eligible Companies — Section 76
Section 76 of the Companies Act, 2013 carves out the second, and far more heavily conditioned, exception to Section 73(1)'s blanket prohibition — permitting a company to invite deposits from the publi…
Terms, Conditions and Limits Governing Deposits
Even once a company is entitled to accept deposits — whether from members under Section 73(2) or from the public under Section 76 — the Companies (Acceptance of Deposits) Rules, 2014 fix the outer com…
Deposit Repayment Reserve and Repayment of Deposits
Because a deposit is, in substance, an unsecured or only lightly secured promise by the company to repay a sum of money on a fixed future date, the Companies Act, 2013 and the accompanying Rules build…
Role of the Secretary in Accepting and Managing Deposits
Every statutory condition studied in this chapter — the resolution, the circular or advertisement, the Deposit Repayment Reserve, the credit rating, the trustee appointment, the annual return — has to…
Distinction Between Deposits from Members and Deposits from the Public
Bringing together, in one place, everything this chapter has covered separately about Section 73(2) member deposits and Section 76 public deposits makes it far easier to answer a distinguish-type ques…
Exercises
+−Show 8 questionsHide questions8 questions
- Q1What do you mean by 'Deposit'? Explain the categories of amount excluded from the definition of deposit under the Companies Act, 2013.Free
- Q2Explain the provisions of Section 73 of the Companies Act, 2013 relating to acceptance of deposits from members.Free
- Q3What is an 'Eligible Company'? Explain the conditions to be satisfied by a company before it can accept deposits from the public under Secti…Free
- Q4Explain the terms and conditions relating to the period, amount and rate of interest applicable to deposits accepted by a company.Preview
- Q5What is a Deposit Repayment Reserve Account? Explain the provisions relating to repayment of deposits.Preview
- Q6Explain the role of the Secretary in accepting and managing the deposits of a company.Preview
- Q7Distinguish between deposits from members and deposits from the public.Preview
- Q8Write short notes on: (i) Deposit Trust Deed, and (ii) Credit Rating, in relation to acceptance of deposits from the public.Preview
Sample & Board Papers
Sample papers and previous-year board questions for this subject.
+−Show 18 questionsHide questions18 questions
- Q1State whether the following statement is True or False. The deposit can be accepted for a maximum of 6 months. (a) True (b) FalsePreview
- Q2Study the following case/situation and express your opinion. | ABC Company Ltd. is an eligible Public Company as per the Companies Act, 2013…Preview
- Q3Government company can collect deposits from its members. (a) True (b) FalsePreview
- Q4Depositors are given voting rights. (a) True (b) FalsePreview
- Q5Justify the following statement: All companies cannot accept deposits from the public.Preview
- Q6Company can accept deposits from public, minimum for ______ months. (a) Six (b) Nine (c) TwelvePreview
- Q7Find the odd one. (a) Private company (b) Non-Eligible public company (c) Government companyPreview
- Q8Correct the underlined word and rewrite the following sentence. Deposit is a **long** term source of capital.Preview
- Q9State any four terms and conditions regarding acceptance of deposit.Preview
- Q10Deposit can be accepted for a minimum of 6 months and a maximum for ______ months. (a) 36 (b) 3 (c) 30Preview
- Q11Write a word or a term or a phrase which can substitute the following statement. Agreement between company and Deposit Trustee.Preview
- Q12Study the following case/situation and express your opinion. Moon Private Ltd. Company wants to raise funds through deposits: Can the compan…Preview
- Q13State any four terms and conditions regarding acceptance of deposit.Preview
- Q14A Company cannot accept deposit for more than ______ months. (a) 24 (b) 36 (c) 45Preview
- Q15Explain the following term/concept. Register of DepositPreview
- Q16Angel Company Ltd. plans to raise funds through public deposits. Its net worth is ₹ 250 crores. Can they accept deposits from the public? Ca…Preview
- Q17State any four terms and conditions regarding acceptance of deposit.Preview
- Q18State with reasons whether the following statement is True or False: A private company can accept deposits from the public.Preview