Subscriber to moa doesn't pay money

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 June 2014 Dear Expert,
If subscriber to MoA doesn't pay money then with which timelimit he should pay

And what are the consequence if not paid with the time limit

Please reply its urgent.

Ankur Garg

Ankur Garg (Expert)
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13 June 2014 There is no time limit prescribed for the same. But it is advisable to pay and deposit the same in company bank account.

For non-payment statutory auditor may object and qualify auditor report.

Thanks

Ankur Garg

Ankur Garg (Expert)
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13 June 2014 Subscribers of MOA are deemed shareholders of the company. They don't need to take shares. As soon as they subscribe the MOA & file it with ROC along with other incorporation documents they become the members as well as shareholders of the company. Appreciate further have you ever filed form-2 for the subscribers? The answer would be No. That itself is a kind of proof that no allotment is required to be made to the subscribers.

Form-2 is not required to be filed for subscribers hence no formal allotment is required in case of subscribers. They are deemed members and shareholders of the Company.

Regarding receipt of payment from subscribers I would say ideally such amount should be deposited by the subscribers after incorporation of the co. in the newly opened bank a/c of the company and record the same in the first BM Minutes. (as told you earlier).
Alternatively, as there is no tracing (as far as ROC is concerned) of such amount, it may be deposited by them later. As a CS i would suggested you should opt I option to avoid any kind of future problem.

DATE OF ALLOTMENT TO SUBSCRIBERS AND DATE TO BE MENTIONED ON SHARE CERTIFICATE

Date of allotment to subscribers will be the date of incorporation of the company and the same date will also be used for printing on share certificate to be issued to subscribers.
Practically & legally this is very much possible. To conclude you may use Date of Incorporation of the company for the purpose of:
1. Printing on share certificate of subscribers
2. as date of Allotment to subscribers
3. For the purpose of filling the column in register of member to enter the name of subscribers.

Even if you receive the amount from subscribers after 6 months the date of deemed Allotment and date on share certificate would remain the same i.e. date of incorporation of the company.

In case of any doubt please post it. I’ll definitely try my best to solve it.

Best Regards

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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13 June 2014 https://www.caclubindia.com/experts/subscriber-to-moa-hasn-t-pay-money-1754319.asp#.U5sY-9IW2Rg

pls refer for more details

Querist : Anonymous

Querist : Anonymous (Querist)

14 June 2014 Dear Ankur Sir,
I read Sec 248 (1)(b) of Co's Act 2013 wrt Chapter XVIII, where the said sec says that ROC has power for removal of name of the company under the following circumstances.

In which 1 of the circumstances was Non payment of money by subscriber with 180 days from date of incorporation.

Does it mean that 180 days is the time limit

Querist : Anonymous

Querist : Anonymous (Querist)

14 June 2014 AND Sir,
What if Company has failed to issue Shares and Subscriber has only signed the MoA.

Querist : Anonymous

Querist : Anonymous (Querist)

14 June 2014 AND Sir,
What if Company has failed to issue Shares and Subscriber has only signed the MoA.

Ankur Garg

Ankur Garg (Expert)
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15 June 2014 Yes. 180 days is newly prescribed time limit under CA 2013. I apologies for the inconvenience as I missed that provision.

Further no formal allotment to subscribers is required. Like in CA 1956 we never filed form 2 for allotment to subscribers.

So in any case subscribers will be the first shareholders in the company.

Thanks

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