Kindly help me, if the Company (Pvt. Ltd.) received share application money from shareholder then is there any time limit for giving shares to that shareholder? if yes what is the time limit to allot shares.
and
in case, if the company wish to refund the application money what is the time limit for the same? is there any due dates.
For private limited company, the time period is not defined.
The new provisions are introduced in Revised Schedule VI, but the time period is not also not mentioned therein.
SHARE APPLICATION MONEY PENDING ALLOTMENT - Share Application Money exceeding the issued capital & to the extent not refundable should be should be Between Shareholders’ Funds & Non-Current liabilities. -Share application money not exceeding the issued share capital and to the extent not refundable shall be shown under equity and share application money to the extent -Share Application Money due for refund should be shown under OTHER CURRENT LIABILITY -If SAM > Authorized Capital (Approval of increase in Authorized Capital is pending) than be shown under OTHER CURRENT LIABILITY
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