Share application money

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 October 2011 In the Memorandum of Association of a public company,four shareholders hold 10000 equity shares each. The date of incorporation being 3.5.2005.But the application money has been brought by them after 3.5.2005. Is it correct that application money is bought after the date of incorporation which can be said to be the date of allotment?

RG - A Helping Hand

RG - A Helping Hand (Expert)
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12 November 2011 For subscriber of MOA date of allotment would be the date of incorporation of the company as it is just a formality they are deemed shareholders of the company.

So it is ok if they bring money later. But in the annual accounts the same money should be reflected.

RG