16 February 2009
hi, How long can a Limited company keep share application money in its books without allotment? Can this money be used by the company for meeting its expenses
Nothing is mentioned in the Companies Act 1956. But after E-Filing has come we should allot the shares before closing the first Annual Accounts..Bcz in the E-Forms Paid up capital field is compulsory... For subsequent allotments no issues there is no time limit..
According to me company can not use it for operations as the same need to be returned if no allotment is done.
CAclubindia
