Q.Study the following case/situation and express your opinion.
Moon Private Ltd. Company wants to raise funds through deposits:
Can the company accept deposits from the public?
Which document should the company issue to invite deposits?
What is the maximum period for which company can accept deposits?

Private company — cannot take deposits from the public (only from members under Sec. 73); invites deposits by a circular to members; maximum period 36 months.

The Companies Act, 2013 distinguishes between deposits from members and deposits from the public:

• From the public: only an eligible public company (meeting the net-worth/turnover criteria under Section 76) may accept deposits from the public. A private company like Moon Pvt. Ltd. cannot accept deposits from the public.
• From members (Section 73): a private company may accept deposits only from its members, after passing a resolution and complying with the prescribed conditions (deposit repayment reserve, etc.). …