Shares alloted without authorised capital

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Querist : Anonymous

Querist : Anonymous (Querist)

25 June 2010 One of our client alloted shares without increasing authorised capital in march 2009. Then after when directors came to know their default they passed a resolution for increasing authorised capital in September. And filed form 5 in september. Thereafter they filed Form 2 for allotment in January 2010.
I want to know what are the remedies in this case?

Rasesh

Rasesh (Expert)
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26 June 2010 No need to worry. There is no point in try to remedying the situation.

Till such time the allotment is not shown, the amount may be shown as share application money only.

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Querist : Anonymous

Querist : Anonymous (Querist)

27 June 2010 Thanks for answering my question.

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Querist : Anonymous

Querist : Anonymous (Querist)

27 June 2010 But please further clarify me that as date of allotment in form 2 is 31/03/2009 and cheques from parties have also been received on 31/03/2009. Can we still show this amount as application money?

Rasesh

Rasesh (Expert)
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28 June 2010 In that case, it would not be right to show it as allotment money.

I understand from the above that the date of allotment shown in Form 2 is prior to the date of Form 5 for increase in capital.

In such cases, the ROC may raise a query. Till then, stay silient in the matter.

Querist : Anonymous

Querist : Anonymous (Querist)

28 June 2010 Is there any penalty in the Act in such a cases? Annual filing is also pending of this company so we must file annual return or not?

Ankur Garg

Ankur Garg (Expert)
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28 June 2010 In your case date of GM for increase in authorised capital must be before allotment in march. For annual return show the correct AC and paid up capital as per form 5 and form-2

Regards

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Querist : Anonymous

Querist : Anonymous (Querist)

28 June 2010 Is there any penalty for this case? And Compliance Certificate should have any qualification or not?

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Ankur Garg

Ankur Garg (Expert)
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01 July 2010 No specific penalty...you have to pay additional fee to ROC for late filing of e-forms 5 and 2.

Thanks

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