Section 42 under companies act, 2013

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Rajeshree Desai (Querist)
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22 December 2015 In respect to section 42 of the companies act, 2013, 1. Can an Allotment be made after completion of 60 days of receipt of Allotment money... Because the Act say only abt refunding it, and provisions if company wishes to Allotment after completion of 60days.. The directors were not available to make any signatures for making the Allotment and due to this 60 days have been passed..

Pratik Shah

Pratik Shah (Expert)
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22 December 2015 Sorry to say but your interpretation is incorrect. Section 42(6) clearly says that company shall allot securities within 60 days from the date of receiving money.
If company is unable to allot shares within such time, the company shall refund the amount. Now, if company is liable to refund the money, how can it allot shares after 60 days?