Share Application Menies
Querist : Anonymous
We have one Pvt Ltd comp with paid up capital of 30crores. We have receieved Rs 1 crore as Share Application money.
In our B/S as on 31.03.09 we have shown the Share Application money lying in the company in liablity side.
Now I would like to enquire in the Act there is any restriction for share application money. The money has to be refunded apart from that is there is any restrictions as per law with regard to this.
Kindly clarify my query ?
Regards
As is evident that the Company has accepted the Share Application Money you may do one simple thing. You may record the above transaction i.e. receipt of share application money and assurance given to proposed allottee in the board meeting minutes.
In other words simple noting of such receipt in the board minutes would be enough. No need to take any kind of approval from any concerned authorities.
Regarding time limit to convert such share application money into capital the law is silent. However as per practice allot share with 6 months of the receipt of application money.
Best Regards
Further collect the share application form from the proposed allottee for your record. You may download the sample share application from the link mentioned below:
https://www.caclubindia.com/share_files/files_display.asp?files_id=11908
Regards
Querist : Anonymous
Thank you very much for clarifying my query.
rgds
CS Jithesh
Querist : Anonymous
i just want to ensure that
As per Companies Act there is no provision for time limit of share application money refund?
Pls clarify sir.
Rgds
CS Jithesh
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