30 October 2010
A company incorporated in sep 2008 with authorised capital of Rs 1,98,00,000 divided into 19,80,000 shares of rs 10 each. members subscribed for 10,00,000 shares in MoA. Now the balancesheet of company is showing paid up capital 99,00,000 divided into 9,90,000 shares. is it possible that paid up capital can be less than the capital subscribed in MoA at the time of incorporation
It is not possible that paid up capital can be less than the capital subscribed in MoA at the time of incorporation.
A person subscribing to the MOA shall become a member of a company on its incorporation and remains so till the company accept his surrender of shares or transfer of shares {U.P. Oil Mills Co. Ltd. In Re (1931)}
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