Dear All,
So far as companies Act is concerned, the Act is silent regading time limit for allotment of Shares. Since we are unlisted public Company, listing compliances are not applicable.
In further to my query, i would like to share the following more details regading the matter:
1) The share application amount has been received from a Director of the Company who is NRI
2) The Share applicaiton amount was received on August, 2010.
3) Among these 7500 shares have been alloted to NRI DIrector. However still we are having pending share applicaiton money amounting to Rs. 4,50,000/- which have not been refunded till date.
Since the share application money has been received from NRI Director, FEMA guidelines will come into the picture and as per FEMA & FDI policy, the Shares have to be alloted within 180 days from date of inward remittance. If shares are not alloted within 180 days then forthwith it is required to be refunded.
Now the fact is that-
Due to negligence on the part of the Company,
1) the Company has not intimated to RBI alogwith FIRC of Inward remittance received from NRI Director.
2) Since 7500 shares have been alloted to NRI DIrector, the Form FC-GPR is required to filed within 30 days of allotment which is not filed at all.
Now suppose we refund these amount now then obviously AD-RBI will ask the purpose of Remittance. Since the purpose of remittance is refund of share application money then again the question will come why the Company has not alloted shares within 180 days of Receipt of Inward Remittance and why the co has still retained the share application money??
so can u please guide me how to refund such amount when above referred non compliances are there in a Company??
Thanks & Regards
Zankhana
CAclubindia
