Asif Khan (Taxation executive) (410 Points)
18 December 2009dear friends
One of the pvt ltd co had issued shares to an individual and recieved the share application money from him but the company had not carried the neccessary procedure after share application money is recieved. Pls guide me with the procedure. where is the share application form available.
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 18 December 2009
Hello Asif,
As is evident that the Company has accepted the Share Application Money you may do one simple thing. You may record the above transaction i.e. receipt of share application money and assurance given to proposed allottee in the board meeting minutes.
In other words simple noting of such receipt in the board minutes would be enough. No need to take any kind of approval from any concerned authorities.
Regarding time limit to convert such share application money into capital the law is silent. However as per practice allot share with 6 months of the receipt of application money.
Further collect the share application form from the proposed allottee for your record. You may download the sample share application from the link mentioned below:
/share_files/files_display.asp?files_id=11908
Regards
CAclubindia
