Amending the Companies (Acceptance of Deposits) Rules, 2014 by
Companies (Acceptance of Deposits) Second Amendment
Rules, 2015 was breathe taking amendment for Private limited Companies who
mostly depend on Loan from Directors, Share Holders or their Relatives as a
means of finance. This Loan from Directors’ Relatives was brought into the
ambit of Deposit with the introduction of Companies Act 2013. Although much
delayed, the Ministry of
Corporate Affairs Vide Notification Dated 15.09.2015 notified the much awaited
and anticipated amendment in Deposit Rules by Companies (Acceptance of
Deposits) Second Amendment Rules, 2015.
The
Ministry of Corporate Affairs has come out with relief vide its amendment dated
15.09.2015 where it has provided that from 15.09.2015 onwards, a private
limited company can accept unsecured loans from a Director or Relative (may
or may not be shareholder) of Director, provided that the Director or his
relative from whom money is received, furnishes to the company, a declaration
to the effect that the amount is not out of borrowed funds, and the same shall
also be disclosed in the Board’s Report.
To summarize:
1. A private limited company can accept any
amount from Director or his Relative subject to the condition that the fund
lent should not be out of borrowed funds.
2. The Director or his Relative needs to give
declaration to such effect.
3. Board Report must also disclose the details of
money so accepted by the company.
Detailed
notification by the ministry is as under.
[TO
BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3,
SUB-SECTION (i)1
Government
of India
Ministry
of Corporate Affairs
Notification
New
Delhi, Dated- 15th September, 2015
G.S.R. (E). – In exercise of the powers
conferred by sections 73 and 76 read with sub section (1) of section 469 of the
Companies Act, 2013 (18 of 2013), the Central Government hereby makes the
following rules further to amend the Companies (Acceptance of Deposits) Rules,
2014, namely:-
1. (1) these rules may be called
the Companies (Acceptance of Deposits) Second Amendment Rules, 2015.
(2) They shall come into force on the date of
their publication in the Official Gazette.
2. In the
Companies (Acceptance of Deposits) Rules, 2014 (hereinafter referred to as said
rules), in rule 2, in sub-rule (1), in clause (c), for sub-clause (viii), the
following shall be substituted, namely:-
“(viii) any amount received from a person who,
at the time of the receipt of the amount, was a director of the company or a relative
of the director of the private company:
Provided that the director of the company or
relative of the director of the private company, as the case may be, from whom
money is received, furnishes to the company at the time of giving the money, a
declaration in writing to the effect that the amount is not being given out of
funds acquired by him by borrowing or accepting loans or deposits from others
and the company shall disclose the details of money so accepted in the Board’s
report;”.
3. In the said rules, in rule 3, –
(a) for the words “paid-up
share capital and free reserves”, wherever they occur, the words “paid-up share
capital, free reserves and securities premium account” shall be substituted;
(b) in sub-rule (8), in the
Table, for item (c) and entries relating thereto the following shall be
substituted, namely:-
“(e) Brickwork Ratings India Pvt Ltd
(Brickwork) BWR FBBB”.
[File No 1/8/2013-CL-V]
Amardeep Singh Bhatia, Joint Secretary
Note. – The principal rules were published in
the Gazette of India, Extraordinary, Part II, Section 3, sub-section (i) ride
number G.S.R. 256(E), dated the 31st March, 2014 and were subsequently modified
vide number G.S.R. 386(E), dated the 6th, June, 2014 and G.S.R. 241(E), dated
the 31st March, 2015.
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