Increase in Auth Capital
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
23 April 2010
Share Apllication money may be received without increasing the autorised capital and subsequently the same will be raised?
Share Apllication money may be received without increasing the autorised capital and subsequently the same will be raised?
23 April 2010
yes you can do that... in case of over subscription there are chances of increase in share application. But you cannot increases authorised capital looking to the application money received. once that subsciption is closed and after relavant period as per companies act you can increase the share capital...
23 April 2010
Hello,
Receipt of share application money over and above of Authorised capital is not a default at all, hence you may accept share application money over authorised capital. Reason being share application money is not in the nature of paid up capital unless and until allotment of share against the share application money.
In other words only after allotment of share you can consider such share application money as paid up share capital. But before passing allotment resolution you have to increase your Authorised capital.
Best Regards
Receipt of share application money over and above of Authorised capital is not a default at all, hence you may accept share application money over authorised capital. Reason being share application money is not in the nature of paid up capital unless and until allotment of share against the share application money.
In other words only after allotment of share you can consider such share application money as paid up share capital. But before passing allotment resolution you have to increase your Authorised capital.
Best Regards
23 April 2010
Hello,
I am not sure about the increase in authorised capital after receiving application money or else all the company will do that. Now a days all the companies are oversubscribed by more than 10 times. So they can increase capital instantly. But noone do it.
I am not sure about the increase in authorised capital after receiving application money or else all the company will do that. Now a days all the companies are oversubscribed by more than 10 times. So they can increase capital instantly. But noone do it.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- GST ON EXPORT COMMISSION
- Should I report my US salary for January, February, March in Schedule FA?
- RCM INVOICING FROM NOV-2024
- GST input on Mobile Handset
- Material and freight in same invoice
- TDS under section 194J inclusive of reimbursement of expenses
- TDS on Material and Labour in same invoice
- Should I be worried about and rectify reporting Jan,Feb ,March 2024 foreign salary in schedule FA?
- BUYING PROPERTY COULD NOT FILE 26QB
- Gst input for FY 23-24
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
Trending Online Classes
CAclubindia
