Query related to share application money

Ravi (Executive-Corporate Affairs)   (31 Points)

25 April 2014  
Dear All, 
Greetings!
 
Queries related to Share Application Money are as follows
 
1. As per the provisions of new Act every Company shall allot the shares within 60 days from the date of receipt of share application money or shall refund within 15 days from the expiry of the 60th day.. In leau of this, what shall be the stand of the share application monies appearing in the balance sheet for the FY 31.03.2014. Now all such Companies shall allot the shares/refund the money by May end or is there any other way out?
2. If the Company intends to allot the shares after 60 days, can the Company do so?
3. As per the provisions of the FEMA, Company should allot the shares within 180 days from the date of receipt of application money, whereas in the new Act it says within 60 days Company should allot the shares. Now going by the Rule of harmonious Const, the allotment irrespective whether the allotee is resident/Non- resident has to be made within 60 days to comply both the Acts, How far it is practically possible?
4. The Rules of the Deposits says that failure to allot the shares within 60 days the money be treated as deemed deposits in such a case what shall be the further course of action and what procedure shall be followed for deemed deposits. Further if the Company on account of failure to allot the share within the time pays the interest @ 12% regularly, will it still be construed as deemed deposits?

 

Please provide your valuable inputs.

 

Ravi

+91 91 6006 4204