Share application money

Pls tell me, till what time share application money can be shown as pending allotment, in case of pvt. co. And what is the interest rate after that period. Pls also tell me where is it written.

Also, can a company receive share application money beyond is Authorised capital ? In a pvt. co's bal sheet, auth cap is equal to paid up cap and then also share application money is appearing in its balancesheet. Hoping to increase the auth cap with in sometime, can a company receive share application money?

Replies (4)
The time line for allotment for public co is 1 month. However , no such time line is specified in case of pvt limited company . It has to be made within reasonable time say 6 months

Thanks for reply sir but Its 60 days in case of unlisted pub co.

In case of public companies, shares must be allotted within 2 months of receiving the application money.

 

However, in case of private companies nothing is provided so far.

 

Before receiving the application money the Authorised Capital must be taken into consideration. Because the purpose off application money is allotment of share. Therefore, it must be within the limits of Authorised Capital. Otherwise the Authoriseed Capital must be increase accordingly.

Thanks Ankur sir....

It means a company cannot receive application money beyond its Authorise capital. Is it so? Cant it be possible to first receive the sh app money and then increase the auth cap accordingly after sometime ?

Also pls tell me the resolutions to be passed in BM and GM regarding conversion of private company to public company.

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