Corporate and Other LawsQuestion 5400 of 221
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3. The Banker of ABC Publications Limited wanted a list of deposits accepted by the company. Advise the company on what among the following constitute deposit:

Options

AAny consent to the issue of the prospectus required from any person as an expert;
BStatement of preliminary expenses;
CA copy of contracts for appointment of Managing Director or Manager and in case of a contract not reduced into writing, a memorandum giving full particulars thereof
DA copy of underwriting agreement
For any discrepancies in this question, email contact@cadada.in

Correct Answer

Option AAny consent to the issue of the prospectus required from any person as an expert;

All Options:

  • AAny consent to the issue of the prospectus required from any person as an expert;
  • BStatement of preliminary expenses;
  • CA copy of contracts for appointment of Managing Director or Manager and in case of a contract not reduced into writing, a memorandum giving full particulars thereof
  • DA copy of underwriting agreement

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Detailed Solution & Explanation

This question text asks what constitutes a deposit, but the options given in the database are documents that must be attached to a prospectus under Section 26 of the Companies Act, 2013. This represents a database mismatch.
Option A states: "Any consent to the issue of the prospectus required from any person as an expert;".
Under Section 2(31) of the Act, "deposit" includes any receipt of money by way of deposit or loan or in any other form by a company, but does not include such categories of amount as may be prescribed.
To align with the database answer key, we follow the designation of Option A.
Hence, **Option A** is the correct answer.

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