09 August 2017
Suppose in Limited closely held company share application money is more than paid up share capital since from last so many years due to the reason that the company stopped its business since from last so many years and making statutory compliance like audit and submitting ROC and IT Returns regularly. The holders of Share Application Money are share holders of the company and company is not in a position to return share application money and on the other hand holders of share application money are demanding shares of the company and not their money.
The Directors wanted to write off share application money by issuing shares as per demand of holders of share application money.
Please explain the procedures as per law and suggest your expert opinion.
10 August 2017
Sir The Share Application Money stands prior 2013 and as such how to cover up period of 60 days from receipt of share application money and company has not sufficient funds to return money to share applicants and on the other hand share applicants wanted shares instead of share application money
CAclubindia
