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subscriber to moa

RISHI (cs) (227 Points)

21 February 2010

A company is incorporated on 25-12-2008 and having minimum subscribed capital is Rs.1 Lacs.Three subcribers introduced their money as :- Subscriber -1 introduced Rs.40000 on 05-01-2009, Sub-2 Rs.40000 on 20-01-2009 and Sub. -3 on 20-06-2009. What will be the date of allotment of shares?how the first BS will stand if first fy ends on 31-03-2009.

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4 Replies

CourseCart.in (Mentor at SHAYVIDZ Academy) (3756 Points)
Replied 24 February 2010

Date of incorporation will be the date of allotment... n the receipt of money will be irrelevant...

In my opinion, paid up capital as on 31.03.2009 will definitely be of Rs. 1 lacs... n Rs.20000 will be shown in receivable from the 3rd subscriber in the assets side of the balance sheet of FY 2008-09..

Logic behind that, subscriptttion of shares through MOA is pre-incorporation contract/transaction which is RATIFY by the BOD in 1st BODM.. so the date of subscriptttion will be the date of incorporation.. Subscriptttion through MOA is treated as Deemed Allotment...

So, if the subscribers dont give the money, then we cant say that company is having NIL paid up capital.. it must be shown as receivables only...

Opinion of other members shud also be solicitated...

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CA.SKR (CA; CS-Final (One Group); DISA (ICAI); Insolvency Professional) (442 Points)
Replied 24 February 2010

I request Mr. Ankur Garg, Mr. Ankur Shrivastava and other experts to give their expert opinion on the above issue as I am also confused regarding presentation of the paid up share capital in the Balance Sheet as on 31.03.2009 in the above query. This will help us to form a firm opinion on this issue.

Thanks

Abhinaya Kulkarni (Service) (170 Points)
Replied 09 October 2012

Dear,

did you get solution to your query, if yes, please share.

Regards,

Venkateswara Rao Sapare (Accountant) (1500 Points)
Replied 09 October 2012

CA Adarsh Agrawal said

‘So, if the subscribers dont give the money, then we cant say that company is having NIL paid up capital.. it must be shown as receivables only... ‘

You are right CA Adarsh. Please read following:

Sec 34. Of the Companies Act, 1956 EFFECT OF REGISTRATION

(1) On the registration of the memorandum of a company, the Registrar shall certify under his hand that the company is incorporated and, in the case of a limited company, that the company is limited.

(2) From the date of incorporation mentioned in the certificate of incorporation, such of the subscribers of the

memorandum and other persons, as may from time to time be members of the company, shall be a body corporate by the name contained in the memorandum, capable forthwith of exercising all the functions of an incorporated company, and having perpetual succession and a common seal, but with such liability on the part of the members to contribute to the assets of the company in the event of its being wound up as is mentioned in this Act.

Hope, above underlined expression may enable to understand us that CA Adarsh is right.

venkateswara rao sapare