CS
2930 Points
Joined April 2016
Yes, it is compulsory for the Company to issue the fully paid up shares to the subscriber of the Company because suppose the money is received for 1000 shares of Rs. 10/-each which means Rs. 100000 value of shares, in that case such 100000 shares shall be deposited in Company's current bank account and as per the provisions of the Companies Act if the share are not allotted within 60 days of the application money, it shall be treated as deposit.
Subsequently after the incorporation of Company, the Company can issue the partly paid up share capital in respond to the total application money received either by the right issue or by way of private placement of shares