10 March 2017
A company in corporated in august 2016 has yet not introduced the paid up capital. Is it necessary to invest the capital as mentioned in moa by the subscribers? Please give reference of particular section/rules.
Thanks in advance
16 March 2017
Yes Nikhar, subscribers to the MOA are required to take respective shares in the first board meeting. Section 56 of the Act stipulates that the company is supposed to issue share certificates to subscribers to memorandum within two months of incorporation which casts a responsibility upon subscribers to make the payment for the shares subscribed by them within two months.
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