I want to know that is there any time limit for allotment of equity shares, or period upto which the company should allot equity shares from receipt of application?
Time limit for filing Form 2, return of allotment?
CA Suraj Prasad Shaw (Chartered Accountant) (504 Points)
09 June 2011I want to know that is there any time limit for allotment of equity shares, or period upto which the company should allot equity shares from receipt of application?
Time limit for filing Form 2, return of allotment?
Hardik
(Proprietor)
(52 Points)
Replied 09 June 2011
There is no time limit for allotment of shares after receipt of share application money as per Companies Act. However, it is advisable to allot shares within 6 to 12 months after receipt of share application money. Form 2 is required to be filed within 30 days from the date of allotment.
CA Suraj Prasad Shaw
(Chartered Accountant)
(504 Points)
Replied 22 December 2011
| Originally posted by : Neha Jain | ||
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There is no time limit for allotment of shares after receipt of share application money as per Companies Act for private limited company. However, in the case of public company now with effect from 14.12.2011 it is necessary to make allotment within 2 months or either to refund amount within 15 days of expiry of 2 months. Form 2 is required to be filed within 30 days from the date of allotment and thereafter form 2 can be filed with additional / late fees. |
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Neha,
Can you provide that notification/circular in which it is mentioned that time limit for filing of return is 2 months or either to refund amount within 15 days of expiry of 2 months.....
CA Suraj Prasad Shaw
(Chartered Accountant)
(504 Points)
Replied 22 December 2011
| Originally posted by : Neha Jain | ||
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Dear Suraj Relevant rule is attached herewith for your ready reference. Pls revert for any other clarification. Regards, Neha |
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Neha thanks for the information.
The said notification is applicable only for the unlisted public companies, please clarify whether it is applicable for listed public companies or not?
Bankim Shah
(Proprietor)
(24 Points)
Replied 18 January 2012
| Originally posted by : Neha Jain | ||
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There is no time limit for allotment of shares after receipt of share application money as per Companies Act for private limited company. Is It required to file Form 2 where allotment of shares are for those shares which were agreed upon as initial subscripttion to Memorandum ? What are the process for those shares ? Simply bring in the share application/ allot shares , pass resolution and allot share certificates ??? Any further setps are required ??? Thanks |
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NO, It is not required to file Form 2 where shares are issued for initial subscriptttion to Memorandum.
PROCESS :
1. Pass Board resolution :
Subscriber to the Memorandum to be recorded as member of the company:
It was reported that the company has received from subscriber of the Memorandum of Association payment in full in respect of equity shares taken by them. It was then unanimously decided by the Board that:
“RESOLVED THAT the name of the signatories to the Memorandum is placed on the Register of Members for equity shares taken by them. It was further assured that the Company will issue them necessary share certificates under common seal of the company and signed by any two directors & any one person as authorised signatory of the Company.”
2. Issue share certificates : Pay stamp duty on share certificate, affix common seal, get signed by 2 directors and 1 auth sign.
Thanks
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