Share Application Money

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 January 2010 Is it necessary for a private limited company to keep the share application money in a separate bank account?

Rasesh

Rasesh (Expert)
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18 January 2010 No

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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18 January 2010 no

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Ankur Garg

Ankur Garg (Expert)
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19 January 2010 No

If 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.

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.

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