Eligible Public Company — Conditions for Accepting Deposits from Public
# Eligible Public Company (Sec. 76)
## 1. Who is an Eligible Company?
A public company qualifies as an eligible company if it satisfies either of the following thresholds:
Criterion
Threshold
Net Worth
≥ ₹100 crore
Turnover
≥ ₹500 crore
(Only one of the two conditions need be met.)
## 2. Resolution Requirement
The eligible company must obtain prior consent of members through a Special Resolution passed at a general meeting before accepting deposits from the public.
### Exception — Ordinary Resolution Sufficient
Where the deposits are within the borrowing power limits specified under Sec. 180(1)(c), the eligible company may proceed with an Ordinary Resolution.
The Special Resolution (or Ordinary Resolution, as applicable) must be filed with the Registrar of Companies before circulating the deposit invitation.
## Quick Recap
Eligibility = NW ≥ ₹100 cr OR T/O ≥ ₹500 cr.
Default: Special Resolution required.
Within Sec. 180(1)(c): Ordinary Resolution suffices.
Resolution to be filed with ROC.
Worked example
### Example 1
Example — Eligibility Test:
MNO Ltd. has Net Worth of ₹80 crore and Turnover of ₹600 crore. Is it eligible to accept public deposits?
Analysis: Turnover (₹600 cr) ≥ ₹500 cr threshold. Although Net Worth (₹80 cr) is below ₹100 cr, only one criterion need be satisfied. Hence MNO Ltd. IS an eligible public company under Sec. 76.
### Example 2
Example — Resolution Type:
RST Ltd. (Eligible Public Company) has PUC + FR + SP = ₹200 crore and Existing Debts = ₹50 crore. It wishes to accept ₹100 crore as deposits.
Analysis: Proposed Deposits + Existing Debts = ₹150 crore; this is ≤ ₹200 crore. Therefore, within Sec. 180(1)(c) limits — an Ordinary Resolution is sufficient. If the figure exceeded ₹200 crore, a Special Resolution would be mandatory.
⚠️ Common exam mistakes
Treating the Net Worth and Turnover criteria as cumulative — they are alternative; satisfaction of any one is enough.
Believing every eligible company must pass a Special Resolution; an Ordinary Resolution suffices if deposits + existing debts are within Sec. 180(1)(c) borrowing limit.
Ignoring the filing of resolution with ROC — even Ordinary Resolution in this scenario must be filed.
Confusing 'eligible company' (a Public Co. meeting NW/T-O thresholds) with 'eligible private company' (which has different conditions for the relaxation under Sec. 73).
Bare-Act text Section 76 read with Rule 2(1)(e) of Companies (Acceptance of Deposits) Rules, 2014 · Companies Act, 2013 · click to expand
Section 76 — Acceptance of deposits from public by certain companies. Notwithstanding anything contained in section 73, a public company, having such net worth or turnover as may be prescribed, may accept deposits from persons other than its members subject to compliance with the requirements provided in sub-section (2) of section 73 and subject to such rules as the Central Government may, in consultation with the Reserve Bank of India, prescribe.