Share application money

Vishnu Kiran Shastry (Chartered Accountant ) (32 Points)

26 April 2014  

Hi All,

Private Limited Company

According to Companies Act 2013, share application money collected cannot be retained with the company for more than 60 days and shares needs to be allocated within 60 days of receiving share application money. However nothing in this regards is mentioned in the Companies Act 1956. 

My question:

Share application money is received before applicability of Companies Act 2013. Shares have not yet been allocated.

  1. Is the section specifying 60 days applicable to share application money received before introduction of Companies Act 2013?
  2. If yes, from when 60 days time should be considered?

Thanks in adavance for your help and guidance!