SECTION 58A
DEPOSITS NOT TO BE INVITED WITHOUT ISSUING ADVERTISEMENT
Inviting deposits without advertisement - Authority competent to take action notified in
respect of offence punishable under section 58A(6)
In
exercise of the powers conferred by sub-section(1) of section 621 of the
Companies Act, 1956 (1 of 1956), the Central Government here by authorises the
Chief Officer, Deputy Chief Officer, and Assistant Chief Officers attached to
the Department of Non-Banking Companies, Reserve Bank
of India, for the purpose of that sub-section in respect of an
offence punishable under sub-section (6) of section 58A of that Act.
Small-scale industrial units specified to which provisions of the section are not to apply?
In exercise of the powers conferred by sub-clause(ii) of
clause(a) of sub-section (7) of section 58A of the Companies Act, 1956 (1 of
1956) and in supersession of the notification of the Government of India in the
Department of Company Affairs No. GSR 655(E), dated 12th September, 1984, except
as respects things done or omitted to be done before such supersession,
the Central Government, after consultation with the Reserve Bank of India,
hereby specifies the following companies as the companies to which the
provisions of section 58A of the Companies Act, 1956, shall not apply, namely
:--
(a) the paid-up capital of the company does not exceed Rs. 12
lakhs;
(b) the company accepts deposits from not more than 50 persons;
(c) there is no inviation to public for deposits; and
(d) the amount of deposits accepted by the company does not exceed Rs. 8 lakhs or the
amount of its paid-up capital, whichever is less:
Provided that where a company is a small-scale
industrial unit to which the provisions of the Notification No. GSR 655(E),
dated 12th September, 1984 applies, such company shall not, from the date of
commencement of this notification, accept or renew any deposits unless it
fulfils conditions (a), (b), (c) and (d) of this notification.
Explanation : For the purpose of this notification --
(i) a "small - scale industrial unit" means an industrial undertaking registered with the Directorate of Industries or Small-scale Industries, as the case may be, of the State Government and in respect of which the investment in plant and machinery is not in excess of 35 lakhs of rupees in value;
(ii) "deosit" has the same meaning as in clause (b) of rule 2 of the Companies (Acceptance of Deposits) rules, 1975.
All classes of financial companies specified to which
provisions of the section are not applicable
In pursuance of clause
(b) of sub-section (7) of section 58A of the Companies Act, 1956 (1 of 1956),
the Central Government, after consultation with the Reserve Bank of India,
hereby specifies all classes of financial companies as the companies to which no
provisions of section 58A of the Companies Act, 1956 [except the provisions
relating to advertisement contained in clause (b) of sub-section (2) of that
section] shall, for the purpose of that clause, apply.
Explanation : For the purpose of this notification, "financial company" means a non-banking company which is a "financial institution" within the meaning of clause (c) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934).