Share application money

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 September 2011 Dear Sir / Madam,

Can Company refund the share application money before the allotment of shares to applicant?

If yes within how many days money can be refunded?

Guest

Guest (Expert)

24 September 2011 Dear Frnd,

A Company can refund the share application money on the basis of request from Shareholder for Refund! The Company can also charge for the refund of share appln money as Administrative Charges !!

A Company needs to refund the Un allotted share application money with in 120 days, in case of rejection. After the fore mentioned period, the interest shall be charged @ 6.5 % per annum on pending share allotment money ( which was rejected ).

Besides, it could lead to Adverse remarks in case of un allotted amount !

Regards

Sriram R