Corporate and Other LawsMCQQuestion 12535 of 300
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Under Section 76(1) of the Companies Act, 2013, an 'Eligible Company' (public company) which is authorized to accept deposits from persons other than its members must have:

Select Your Answer (Keyboard: A, B, C, D)
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Correct Answer

✅ Option A — A net worth of not less than ₹100 Crore or a turnover of not less than ₹500 Crore

All Options:

  • AA net worth of not less than ₹100 Crore or a turnover of not less than ₹500 Crore ✓
  • BA net worth of not less than ₹50 Crore or a turnover of not less than ₹200 Crore
  • CA net worth of not less than ₹250 Crore or a turnover of not less than ₹1,000 Crore
  • DPaid-up share capital of not less than ₹100 Crore without turnover condition

Detailed Solution & Explanation

Correct Answer: Option **A** (A net worth of not less than ₹100 Crore or a turnover of not less than ₹500 Crore) **Statutory Provision (Section 76 - Acceptance of Deposits from Public by Certain Companies):** Section 76(1) defines an eligible company as a public company having net worth of not less than ₹100 crore or turnover of not less than ₹500 crore, which has obtained prior consent in general meeting by special resolution. Therefore, Option A is the correct legal position under the ICAI curriculum.

Key Concepts to Understand

Acceptance

When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. Acceptance must be absolute and unqualified (Section 7, ICA 1872). A conditional acceptance is a counter-offer.

More Questions from Corporate and Other Laws

Under Section 77(1) of the Companies Act, 2013, within what initial statutory period must a company register a charge created on its property or assets with the Registrar of Companies (ROC)?

Under Rule 3(3) of the Companies (Acceptance of Deposits) Rules, 2014, what is the maximum aggregate limit of deposits that an eligible public company can accept from its members and the public?

Which of the following is a requirement for a company to buy back its securities under the Companies Act, 2013?

What is the tax treatment of buyback of shares by an unlisted company?

Explain the concept of differential rights and its significance in the context of buyback of securities.

What are the legal provisions governing the buyback of securities by a company in India?

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