Companies act
Prashant
(Querist) 31 July 2009
This query is : Resolved
Dear All
Say X is a Pvt Ltd co. and accepts the money from Y Pvt Ltd. Y Pvt Ltd is showing it as an ICD and X Pvt Ltd is showing as a loan.
No agreement has been entered into between the 2 companies for this money. Now my question is whether it is a ICD or loan.
If we say it is ICD then the Pvt Ltd co. is not allowed to accept deposits from outsiders u/s 3(1)(iii)(d)
So how to prove that this is not ICD but it is a loan. It was carrying interest @ 12% p.a.
So what are the characteristics of ICD & Loan by which we can discriminate these two & prove that it is not deposit but it is loan.
Are any other provisions applicable for such transactions under companies act & whether any violation is made
Kindly guide
Thanks in advance
Prashant
(Querist) 14 August 2009
Dear All
Say X is a Pvt Ltd co. and accepts the money from Y Pvt Ltd. Y Pvt Ltd is showing it as an ICD and X Pvt Ltd is showing as a loan.
No agreement has been entered into between the 2 companies for this money. Now my question is whether it is a ICD or loan.
If we say it is ICD then the Pvt Ltd co. is not allowed to accept deposits from outsiders u/s 3(1)(iii)(d)
So how to prove that this is not ICD but it is a loan. It was carrying interest @ 12% p.a.
So what are the characteristics of ICD & Loan by which we can discriminate these two & prove that it is not deposit but it is loan.
Are any other provisions applicable for such transactions under companies act & whether any violation is made
Kindly guide
Thanks in advance
