Share Certificate

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

01 January 2010 A company receives Share Application money from M/s XYZ ( It is a proprietorship firm). In whose name the share certificate is to be issued i.e. in the firm name or in the name of the proprietor.

CS Vandana Kacholia

CS Vandana Kacholia (Expert)
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01 January 2010 well reference to section 41 a person can be a member by way of a)an agreement in writing and b) an entry in register

but according to section 3(42)OF General Clause act, 1987 person includes any company, aop and individual, government but does not include the proprietor concern as it is not an independent, legal and juristic entity having legal recongnition in the eye of law.

to conclude there is no question of issue of certificate at all.

others views are also invited

Regards

Querist : Anonymous

Querist : Anonymous (Querist)

01 January 2010 So Should the certificate be issued in the name of the Individual.(But the Cheque has been received from the Firm's Bank Account.

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CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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01 January 2010 You have to issue share certificate to the individual. Eventhough you have received from the firm's bank account you should credit to individual account with a narration that the amounts has been given by the proprietorship firm on behalf of the proprietor.

Querist : Anonymous

Querist : Anonymous (Querist)

01 January 2010 But we have issued share certificates in the name of the Firm and also filed the annual return with the ROC. Is there any remedy.

Also can the share certificates be issued in the name of partnership firm