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Question : Company Law prohibits any invitation or acceptance of deposits from persons other than its member, Directors or their relatives for :

Option 1: Private Company

Option 2: Public Company

Option 3: One Person Company

Option 4: None of the Above


Team Careers360 23rd Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Private Company


Solution : It is against the law for a private company to take any invitations or unsecured loans or deposits from anybody other than its members, directors, or close family members. As a result, a private firm may receive deposits from its members, directors, and relatives under a private agreement.

Hence the correct answer is option 1.

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