Dear all,
We are Pvt. Ltd. Company and 100% subsidiary of Japanese Listed Company. We wish to infuse fresh equity capital in the Company which shall be subscribed by our holding company . (I understand that it shall be treated as rights issue as reffered in section subsection 1 (a ) of section 62 )
I understand that act specifically mention in it's section 23 (2) that private Company can issue shares through Rights , bonus issue OR through Private Placement . ) and Section 42 says where Company issue shares under Private Placement ,applicaton money has to be kept in seprate Bank Account and said Application money can be either allocated against allotment and if shares are not alloted within 60 days application money needs to be refunded.
Now , my query is, this specific utilisation of application money is restricted only for the issue which is made under private placement only?
If company makes rights issue, can Co. use the money received as application money , before allotment of shares?
Thanks & Regards,
Gargi
CAclubindia
