24 March 2011
can share application money + subscribed share capital be more than authorised capital for a non-listed pvt ltd co.,. If the answer is 'no' why and what are the consequences. Thank you
The company cannot have control over the number of applications or the quantum of application money being received but at the earliest they must decide about the allotment ratio and refund the excess amount to the applicants. They cannot retain the excess money for an unreasonable period.
Other expert comments on the subject will be appreciated.
CAclubindia
