Ans. This statement is
false.
1. According to
Provision of Section 58 (A) of the Companies Act, 1956 and Rules (2) of the
companies Rules, 1975, the term ‘deposit’ means any deposit of money accepted
and includes any amount borrowed by the company. The term ‘deposit’ however,
does not include specific type of borrowings and security deposits.
2. Receiving the amount
of deposits along with duly filled prescribed application by a company from the
interested public in response to the advertisement given to invite deposits is called
‘acceptance of deposits’.
3. A public company can
accept deposits from the public at large. The term ‘deposit’ is usually taken
as ‘public deposit’ because the deposits are invited and accepted by the public
company from the general public.
