Share application money

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CA VIKASH AGARWAL (Querist)
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06 September 2012 Company's Authorised capital is Rs. 20 Lakhs and Share Application money is Rs. 35 Lakhs it is possible according to laws of Statutory bodies.

Ajay Mishra

Ajay Mishra (Expert)
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06 September 2012 Hi

As per my understanding application money is not permissible in excess of authorised capital.

CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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06 September 2012 Yes, You Cant Take in Excess of Authorised Capital.

But No Where Specifically Mentioned for This in Companies Act, I Hav Seen in Many Companies, That Share Application Money Was Greater That Authorised.

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Ajay Mishra

Ajay Mishra (Expert)
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06 September 2012 Hi

As per revised Schedule VI, the share application money pending allotment details should be given in Balance sheet. It has also to be disclosed that, whether the company has sufficient authorised share capital to cover the share capital amount resulting from allotment of shares out of such share application money.

Guest

Guest (Expert)

06 September 2012 There is no prohibition is SAP money is greater than authorised capital. It can be taken. However, it is not a good practice.

CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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23 December 2013 in new companies act also, there is no as such provision which is marking this.