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Capital brought in by one subscriber in a public ltd co ?

Shiva Arunachalam (Student CS) (92 Points)

21 July 2016

Dear Friends / Experts

One of Our Client has incorporated a Public Limited Company whose sharecapital is of Rs.10,00,000/- divided into 100,000 shares of Rs.10/- each split amongst 7 Subscribers.

Now the Capital Contribution of Rs.10,00,000 has been brought in by a Single Subcriber into the current account of the Company. The Amount has been transfered from the personal account of the subscriber. The Memorandum has 7 Subscribers. But the amount has been a single subscriber.

What can be done in this regard ? Kindly guide and advise.

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2 Replies

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 21 July 2016

All subscribers are liable to contribute to the share capital as agreed. Remaining six subscribers will have to their share to the subscriber who has paid the entire amount. Company has to credit the amount to share capital as received from all subscribers.

Shiva Arunachalam (Student CS) (92 Points)
Replied 21 July 2016

Dear Sir

Thanks for your reply !!! The Company Incorporation date is 25-09-2015. As per the New Act, as we need to close the accounts on 31st March 2016, if we account the sum received on date; how can they be accounted as shareholder of the Company as on 31st March, 2016.

Kindly Guide and Advice Sir...