13 July 2011
Respected Sir, Please tell me that our's is pvt. co. & till now we have not started business. our co. has incorporated on 20 th oct,2010, can we show extra amount bought by directors as share allotment i.e. amount other than minimum subscription (1 lac). can we show this money as loan or share allotment money. also one person who is not director on paper his fund bought in is rs. 5 lac can we show this also as share allotment money or have to show as loan
14 July 2011
Loan can be taken by the Company from its Director and Member as per section 58A of the Companies act 1956 and also in the companies act there provision for Directors contribution but the contribution can not shown as extra money but can be shown as loan.
CAclubindia
