One of our newly incorporated Company received money for further allotment of shares along with initial subscripttion money. can company do so?
Please advice its urgent.
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 29 November 2014
Application money cannot be received unless Board passes resolution for issue of shares and letter of offer is issued. This is applicable in both the cases - rights issue u/s 62(1)(a) and private placement or preferential allotment u/s 62(1)(c) read with Sec.42.
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