Q.State with reasons whether the following statement is True or False:
A private company can accept deposits from the public.

The statement is False. A private company can accept deposits only from its members, not from the public.

Under the Companies Act, 2013, the right to accept deposits depends on the type of company. To protect the general public, the law does not allow every company to invite money from ordinary people.

A private company is permitted to accept deposits only from its members, directors and their relatives, subject to the conditions and limits laid down in the Act and the Deposit Rules. It cannot invite or accept deposits from the general public.

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