Lovely kumari (Practising CS) (501 Points)
11 February 2015Dear all,
Kindly clarify me whether its mandatory to open a new bank account for increase in paid up capital??
Regards
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 12 February 2015
The requirement of opening separate Bank A/c has been given in Proviso to Sec.42(6) dealing with private placement. Rule 13 made u/s 62(1)(c) dealing with preferential allotment also provides that the company will also comply with conditions of Section 42.
However, this requirement is not applicable in case of rights issue u/s 62(1)(a).
CAclubindia
