Can some body could tell me "what ll happen if a private company having a share application money of more than the share capital and is not allotted for the last few years."
13 December 2010
If shares are not alloted, the application money should be refunded within a reasonable time. The "reasonable time" will ba decided on case to case basis.
It may amount to deposit under Section 58A and you may attract penalty for non-compliance under section 58A(10).
Undoubtedly agreed with Warrier Sir...if the money is received from the members, Directors or their relatives provisions of section 58A will not be attracted...
CAclubindia
