Subscribers to moa - allotment - penalty ?

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sharath chandra a (Querist)
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12 November 2011 Hi For a Pvt ltd co .

1. What is the time limit to pay for the subscription of shares by "Subscribers to MOA " ??

2. Any penalty if they have not paid for the same ?

Pls state sections , if any.

In our case - The subscribers have not paid for 1 year the amt required to be paid as per MOA & no shares have been alloted yet.

RG - A Helping Hand

RG - A Helping Hand (Expert)
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14 November 2011 There is no need to formally allot any shares to the subscribers. They are deemed shareholders of the company by virtue of the declaration given in MOA and AOA.

Date of incorporation should be taken as date of deemed allotment and may be printed on the share certificates.

In the first balance sheet subscription money should be reflected as received from the subscribers. So there is no fixed date by which they should pay their subscription money.

RG

sharath chandra a

sharath chandra a (Querist)
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14 November 2011 Thank you Mr Garg.

But as you tell it must be reflected in the financials as received , How is it possible if the amount is not received by the first Balance sheet date.

Shouldnt it be shown as arrears in the Balance sheet ??

Can you quote the section please.

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