24 January 2017
Dear Sir Pls clarify after receiving share application money within how many month the company has to allot the share or refund the share application money. In cash of default what is interest & penalty provisions?
24 January 2017
Shall allot shares within sixty days from the date of receipt of the application money and if the company is not able to allot the shares within that period, it shall repay the application money to the subscribers within fifteen days from the date of completion of sixty days and if the company fails to repay the application money within the aforesaid period, it shall be liable to repay that money with interest at the rate of twelve per cent. per annum from the expiry of the sixtieth day:
24 January 2017
I would slightly differ with the above opinion. The allotment should be made within 60 days else the said amount should be refunded within next 15 days after the expiry of 60 days. But if the amount is still not returned , then it will be treated as deposits & the provisions of the Act relating to deposits will become applicable to it. Please refer explanation to point (vii) of Rule 2(1)(c) of Companies (Acceptance of Deposits) Rules 2014.
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