Utilisation of application money

19 May 2020

A ltd. receive application money on 1st jan 2019 and utilises same immediately for business purpose .Is it permissible under companies act, 2013.

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3 Replies

Devil (Confidential) (177 Points)
Replied 19 May 2020

Not permissible

Harish choursiya (Student cs professional ) (249 Points)
Replied 19 May 2020

Once the company done all the compliance at the beginning like issuance of share certificate filing of relevant resolution.

Conclusion company can utilise the money.

This is based on my understanding.

Chirag (Professional) (1979 Points)
Replied 28 May 2020

Allotment to be done within 60 days from date of receipt of application money and after filing PAS-03 within 15 days, company can utliIse it.

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