Authorised capital enhancment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 April 2011 i hv an pvt ltd which authorised share capital is 1 lacs, in the month of march i hv recd share application money rs 75 lacs through RTGS, till i have not increase my authorised capital, so what issue will raised in this transaction , and if now i want to increase share capital what's the procedure and is there any penalty will be attract kindly clarify .
thanks in advance

regards
vicky

Jayashree S Iyer

Jayashree S Iyer (Expert)
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28 April 2011 Ideally the ASC should be increased before accepting the application money. However you can always substantiate the delay in increasing the ASC by saying that there was delay in holding Board / EGM. If the delay is reasonable then there shouln't be any problem.

Since it's only a month from the date of receipt of application money, hold the BM / EGM immediately and take steps to increase the ASC.

Querist : Anonymous

Querist : Anonymous (Querist)

28 April 2011 is there any penalty for the delay

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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15 July 2024 Non-Compliance: Currently, you are in non-compliance with the Companies Act, 2013, for having received share application money exceeding your authorized share capital.

Penalties: There could be penalties imposed by the ROC for such non-compliance. The penalties can vary depending on the severity of the violation and may include fines or other legal consequences.

Regularization: It’s crucial to rectify this situation promptly by following the procedure to increase your authorized share capital as outlined above. Delay in compliance can lead to further penalties and legal complications.