Small depositor protections require companies to notify the tribunal of repayment defaults and restrict further small-deposit acceptance. The section requires companies accepting small deposits to notify the Tribunal of any repayment default and supply depositor particulars on a monthly ... Summary
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Small depositor protections require companies to notify the tribunal of repayment defaults and restrict further small-deposit acceptance.
The section requires companies accepting small deposits to notify the Tribunal of any repayment default and supply depositor particulars on a monthly basis; the Tribunal may on receipt exercise remedial powers and issue an order within a statutory period. Companies are barred from taking further small deposits until matured small-depositor claims are paid, with limited exceptions, must disclose past defaults and interest waivers in advertisements and application forms, and must prioritise loan proceeds for repayment of small-depositor claims. Contraventions attract criminal penalties and vicarious director liability.
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