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Maximum time span to deposit subscriber amount from subscri

GAURAV SINGH (Managing Director) (99 Points)

24 May 2014

I have registered a private limited company on 24/10/2013 but till the date i am unable to recive subscribe amount from subscriber(as they are unable to arrange money in present) of memorandom nor deposited into corporate account.so my question is how much time span i will got for depositing subscribe amount by overcomming from penality under the new company act 2013. also kidly guide me if there is any statutory liability/formality for giving proof to concern ROC.also till the date my company has not commence any business.

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6 Replies

CS GK Murty (Company Secretary) (225 Points)
Replied 24 May 2014

Sub section 2 of Section 10 of CA 2013 (2) states that all monies payable by any member to the company under the memorandum or articles shall be a debt due from him to the company.

Section 248. (1) (b) states that the subscribers to the memorandum should pay the subscriptttion which they had undertaken to pay within a period of one hundred and eighty days from the date of incorporation of a company as per the declaration under sub-section (1) of section 11 made to this effect made by them.

Since your company is incorporated in 2013, the above provisions are not attracted. Hence I would suggest you to comply with the same within the transition period.

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CS GK Murty (Company Secretary) (225 Points)
Replied 24 May 2014

Transition period is one year from the date of the new act coming into force.

GAURAV SINGH (Managing Director) (99 Points)
Replied 24 May 2014

Kindly eleborate your saying "Since your company is incorporated in 2013, the above provisions are not attracted. Hence I would suggest you to comply with the same within the transition period." in simple words.

CS GK Murty (Company Secretary) (225 Points)
Replied 24 May 2014

The penal provisions as reproduced hereunder are not attracted since these provisions are applicable for companies incorporated w.e.f. 01.04.2014

Section 11. (1) A company having a share capital shall not commence any business or exercise any borrowing powers unless—
(a) a declaration is filed by a director in such form and verified in such manner as may be prescribed, with the Registrar that every subscriber to the memorandum has paid the value of the shares agreed to be taken by him and the paid-up share capital of the company is not less than five lakh rupees in case of a public company and not less than one lakh rupees in case of a private company on the date of making of this declaration; and
(b) the company has filed with the Registrar a verification of its registered office as provided in sub-section (2) of section 12.
(2) If any default is made in complying with the requirements of this section, the company shall be liable to a penalty which may extend to five thousand rupees and every officer who is in default shall be punishable with fine which may extend to one thousand rupees for every day during which the default continues.
(3) Where no declaration has been filed with the Registrar under clause (a) of sub- section (1) within a period of one hundred and eighty days of the date of incorporation of the company and the Registrar has reasonable cause to believe that the company is not carrying on any business or operations, he may, without prejudice to the provisions of sub-section (2), initiate action for the removal of the name of the company from the register of companies.

GAURAV SINGH (Managing Director) (99 Points)
Replied 24 May 2014

you mean to say that i don't have to pay penality as mentioned

"(2) If any default is made in complying with the requirements of this section, the company shall be liable to a penalty which may extend to five thousand rupees and every officer who is in default shall be punishable with fine which may extend to one thousand rupees for every day during which the default continues."

as i have already crossed the due date of 180 days as on 24/04/2014.

also please suggest how soon should i deposite the subscribe capital.