Share application money

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2012 A company has authorized & issued share capital of 10,000 shares.

Can it accept the share application money before raising its authorised share capital ?

Thanx in Advance..

CA RICHA BADALIA

CA RICHA BADALIA (Expert)
Follow

08 September 2012 Yes it can but at the time of allotment of shares, authorized capital cannot be less then the issued capital.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

08 September 2012 Thanx Richa ..but in my opinion should not it firstly raise its authorized capital and then only it can accept the money ...?

Upgrade to CAclubindia Pro. Subscribe Now!

CA RICHA BADALIA

CA RICHA BADALIA (Expert)
Follow

08 September 2012 No its not necessary.Only prior to allotment authorized capital should be more or equal to the issued cap.It may sometimes happen that the share application money is actually not issued but is refunded,so there is no such requirement.

Message likes : 1 times

Guest

Guest (Expert)

08 September 2012 Agree with CA richa bothra

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

13 September 2012 Thank to you for your valuable answer..