Corporate and Other LawsMCQQuestion 12536 of 300
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Under Section 73(2)(c) of the Companies Act, 2013, every company accepting deposits from its members shall deposit on or before the 30th day of April each year in a scheduled bank in a separate account called 'Deposit Repayment Reserve', an amount not less than:

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

✅ Option A — 20% of the amount of its deposits maturing during the following financial year

All Options:

  • A20% of the amount of its deposits maturing during the following financial year ✓
  • B15% of the amount of its deposits maturing during the following financial year
  • C10% of the amount of its deposits maturing during the following financial year
  • D25% of the total outstanding deposits at the end of the year

Detailed Solution & Explanation

Correct Answer: Option **A** (20% of the amount of its deposits maturing during the following financial year) **Statutory Provision (Section 73 - Prohibition on Acceptance of Deposits from Public):** Section 73(2)(c) mandates depositing on or before the 30th day of April of each year, at least 20% of the amount of deposits maturing during the financial year and the financial year next following, in a separate deposit repayment reserve account. 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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