If Private Company has pending share application money from year 2013-14 till date, which is not alloted or refunded till 31/03/2015. Is there is any default? also then what action needs to be taken, and under which section?
04 July 2016
As per Companies (Acceptance of Deposits) Rules, 2014 Deposit includes "any amount received and held pursuant to an offer made in accordance with the provisions of the Act towards subscription to any securities, including share application money or advance towards allotment of securities pending allotment, so long as such amount is appropriated only against the amount due on allotment of the securities applied for;" Explanation.- For the purposes of this sub-clause, it is hereby clarified that - (a) Without prejudice to any other liability or action, if the securities for which application money or advance for such securities was received cannot be allotted within sixty days from the date of receipt of the application money or advance for such securities and such application money or advance is not refunded to the subscribers within fifteen days from the date of completion of sixty days, such amount shall be treated as a deposit under these rules.
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