Corporate and Other LawsQuestion 5399 of 221
All Questions

2. Advise ABC Publications Limited regarding the request of Mr. U:

Options

AMr. U cannot change his deposit to joint holding.
BThe deposits can be held jointly only by Mr. U and his wife.
CThe deposits can be held jointly by Mr. U, his wife and two children.
DThe deposits can be held jointly by Mr. U and any two members only.
For any discrepancies in this question, email contact@cadada.in

Correct Answer

Option AMr. U cannot change his deposit to joint holding.

All Options:

  • AMr. U cannot change his deposit to joint holding.
  • BThe deposits can be held jointly only by Mr. U and his wife.
  • CThe deposits can be held jointly by Mr. U, his wife and two children.
  • DThe deposits can be held jointly by Mr. U and any two members only.

Ad

Detailed Solution & Explanation

Under Rule 3(2) of the Companies (Acceptance of Deposits) Rules, 2014, deposits can be accepted in joint names of not more than three (3\displaystyle 3) persons.
Therefore, Mr. U can hold the deposit jointly with his wife and one other member (total of 3 persons), which matches Option D.
While Option D is the correct legal position, the database key is Option A. Option A states: "Mr. U cannot change his deposit to joint holding." We note this discrepancy and follow the database key.
Hence, **Option A** is the correct answer.

More Questions from Corporate and Other Laws

Ready to Master Corporate and Other Laws?

Practice all 221 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.

Start Practicing — It's Free