Dear All,
Please let me know, whether a company can receive SHARE APPLICATION MONEY more than its Authorised Capital.
Thanks in Advance.......................
13 Replies
CA SHRIPAL LUNIYA
(CA, CS Final & M.Com)
(744 Points)
Replied 08 March 2011
Ya company can receive Share Application Money more then authorised Share Capital but never allot shares more then authorised share capital or issued share capital.
Madhusudan Kabra
(knowledge seeker)
(1779 Points)
Replied 08 March 2011
In my opinion share application money can not exceed issued share capital this is because company recives share application money againist share issued or to be issued for which allotment is pending yet. therefore no question arise of having higher amount of share application money then authorised capital
Regards
Madhusudan K
Madhusudan Kabra
(knowledge seeker)
(1779 Points)
Replied 08 March 2011
| Originally posted by : SHRIPAL LUNIYA | ||
 |
Ya company can receive Share Application Money more then authorised Share Capital but never allot shares more then authorised share capital or issued share capital. |
 |
Company recives share application money againist shares offered for subscripttion . How it can be higher then authorised share capital ......Can you pls give any reference
CA SHRIPAL LUNIYA
(CA, CS Final & M.Com)
(744 Points)
Replied 08 March 2011
No Mr.Kabra
Let a Eg.
A XYZ co. brought out a IPO for 5 lacs share face value 100/- nd company's authorised share capital is 8cror. then here public can offer 10 lacs shares which is more then Authorised Share Capital but here company can never allot these shares more then issued capital which is 5 cror.
CA SHRIPAL LUNIYA
(CA, CS Final & M.Com)
(744 Points)
Replied 08 March 2011
Mr. Kabra
It can more then authorised share capital but company can never alott in excess of issued nd authorised.
Madhusudan Kabra
(knowledge seeker)
(1779 Points)
Replied 08 March 2011
| Originally posted by : SHRIPAL LUNIYA | ||
|
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Mr. Kabra It can more then authorised share capital but company can never alott in excess of issued nd authorised. |
|
hmmm....... Thanks MR. Luniya.....
Preeti Jain
(Company Secretary)
(139 Points)
Replied 08 March 2011
Thanks you all ......................for discussing on my problem.
Now my problem has been sort out..........................
Regards
Preeti Jain
Preeti Jain
(Company Secretary)
(139 Points)
Replied 08 March 2011
Please give me the reply for the same question in context with Private Company.
Also let me know if there is any time period for having such excess Share Application Money.
SANTOSH SHAH
(Company Secretary)
(754 Points)
Replied 08 March 2011
| Originally posted by : Preeti Jain | ||
|
|
Dear All, Please let me know, whether a company can receive SHARE APPLICATION MONEY more than its Authorised Capital. Thanks in Advance....................... |
|
Hi Preeti
In my opinion, Company can accept share application money more than Authorised Share Capital.
according to Rule 2(b) (ix) of the companies (Acceptance of deposits) Rules/ 1975, any amount received from the person who at the time of receipt of the amount was a director or a shareholder of the private company, then such amount will not be treated as deposit within the meaning of deposit rules.
The only Condition applicable for acceptance of Such deposits from the shareholders, directors of the Private company is that the concerned person has to give a declaration in writing to the effect to the company that the amount was not being given out of the borrowed funds or from the funds accepted from the others.
Kindly record in Board Meeting Minutes of excess share application money received.
regards
Santosh Shah
CA SHRIPAL LUNIYA
(CA, CS Final & M.Com)
(744 Points)
Replied 08 March 2011
In Private Company u know all shares alloted between family members, friends nd other some person who are close of Promoters.
so here they make a issue in limited way (as per requirement) so there no any question arise to excess appli. money.
CA SHRIPAL LUNIYA
(CA, CS Final & M.Com)
(744 Points)
Replied 08 March 2011
Agreed with Santosh Shah.
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