23 May 2014
my querey is regarding share allotment where one company (pvt ltd) held the share allotment money for more than 7 yrs notice has been issued by MCA stating to transfer amount to IEPF.now can we make allotment
As per sec 205C of the old Companies Act,1956, the amount standing at the Application Money DUE FOR REFUND has not been repaid for a period exceeding 7 years has to be transferred to IEPF.
Since as per your querry, the amount is not due for refund. Right ?? Therefore, the company can allot the shares.
But there is one more problem, the company has to allot shares within 120 days of receipt of share application money. If this has not been complied, the co has to pay interest @ 18 % p.a for this.
CAclubindia
