15 September 2011
if it is proposed that the loan is converted into shares , and new increased share capital will exceed authorised share capital.
So the company should increase its authorised share capital prior to accepting application money ? or it can accept application money prior to increasing authorised share capital
15 September 2011
Share application money can be accepted if there is sufficient balance in authorised capital (Authorised capital minus capital subscribed & issued). Since the company does not have authorised capital, share application money can not be accepted.
first increase authorised capital then accept share capital.
CAclubindia
