Share application money

This query is : Resolved

SRIGANESH (Querist)
Follow

18 August 2012 A Private ltd company received an amount of Rs. 7 Crores,in 2008 from the foreign investors as Share application money and not issued shares till date. Now the company wishes to repay the money to investors without interest, w
hat are the provisions take into account and what are procedures in it... ?

Is it possible to pay the above application money to another foreign party who authorized to receive by above foreign investor?

Thanks in Advance...

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

20 August 2012 You first check the status of the company on the net. ROC MCA site. If all the filing is done uptodate, then you may take this issue with prior approval. Returning share application money without issuing share capital per se is not a permissible action under companies act.