Share application money

This query is : Resolved

Gnanashekar.R (Querist)
Follow

10 August 2012 Can a private limited company keep the share application money without alloting shares..........? if yes then for how many years and as per which section of the Companies act.....?

CS Taher

CS Taher (Expert)
Follow

10 August 2012 Yes Pvt co can keep share app money without alloting shares..Companies Act is silent abt the the time limit for keeping the share app money.
But as per Companies Act if the money is pending more thn 1yr thn company is liable to pay a interest of 8% pa, or else u can pending sh app money as Deposit.
Pending share app money can be shown under head liability