Moon Private Ltd. Company wants to raise funds through deposits:(a) Can the company accept deposits from the public?(b) Which document should the company issue to invite deposits?(c) What is the maximum period for which company can accept deposits?

Answer: (a) No, it can accept deposits only from its members (b) A circular (circular in the form of advertisement) (c) 36 months

(a) No. A private company cannot invite or accept deposits from the public. Under Section 73 of the Companies Act, 2013, it may accept deposits from its members (subject to the prescribed limits and conditions), and it may also accept loans from its directors and their relatives, which are exempt from the definition of deposits.

(b) The company must issue a circular to its members (in Form DPT-1) stating its financial position, credit rating, total deposits and other prescribed particulars, and file a copy with the Registrar of Companies at least 30 days before issuing it.

(c) The maximum period is 36 months from the date of acceptance or renewal; the minimum period is 6 months.