10 January 2012
Is it necessary for the subscribers of Memorandum of Association to apply for the shares and take the shares? Is it mandatory for the company to allot shares firstly to such subscribers?
10 January 2012
Subscribers of MOA are deemed shareholders of the company. They have agreed to take the shares in the company in the number written in the memorandum. They don't required to apply for the shares.
The company must allot the shares to the subscriber first.
Subscribers have already taken the shares subscribed by them during incorporation.
Now the question relates to First Allotment after incorporation, And here Subscribers do not need to apply and take shares compulsorily, company if so desires can allot the shares to others.
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