share application money

This query is : Resolved

RANJEET (Querist)
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23 July 2010 authorised capital Rs. 100000/-
issued , subscribed &paid up capital RS. 100000/-

WE COLLECTING MONEY RS. 16,00,000/- AS SHARE APPLICATION MONEY W/O INCREASE AUHORISED CAPITAL ,CAN WE DO THAT PLEASE PROVIDE INFORMATION .

CA. Anoop Gadia

CA. Anoop Gadia (Expert)
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23 July 2010 in this case you refund the extra application money.
or you can issue shares on premium.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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23 July 2010 How shares can be issued in premium when entire authorised capital is exhausted?

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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23 July 2010 If u have received share application money then increase the authorised capital simultaneously otherwise u have to refund the share application received as u cannot make allotment for the same.

Also there is no rule FOR the limit of holding share application but preferably allotment must be made within 6 months.