mahavishnu (Proprietor) (107 Points)
09 May 2014In a Private Limited company the Authorised capital as onlu 1 lack and it is fully paid and allotted. The company also taken share application money to the extent of 1 crore and it does not want ot increase the authorised capital and allot the shares.
what is the treatment of share application money after New companies Act, 2013?
wheather the company can continue to hold the same as it is?
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 10 May 2014
As per Rule 2(1)(c)(vii), which has come into force from 1.4.2014, shares must be allotted within 60 days otherwise amount must be refunded. You must therefore take required steps immediately, in any case not later than 30.5.2014.
Vandana J Doshi
(Practising Company Secretary)
(12562 Points)
Replied 10 May 2014
Agree with Agrawal Sir...
Furthermore, if you dont allot it within 60 days, you have to repay it within next 15 days....or else thereafter you will have to repay it with interest of 12% and it will also be treated as deposits wherein you will have to fuether comply with deposits rules.. ....
CAclubindia
