Kindly Explain what is the defination of first allotment??? Will subscrption to the memorandum considered as first allotment?
Payal Jain (CS) (152 Points)
29 April 2010Kindly Explain what is the defination of first allotment??? Will subscrption to the memorandum considered as first allotment?
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 29 April 2010
According to me subscripttion to memorandum is not a first allotment as formal allotment to subscribers is not required and filing of form-2 also not required.
Whenever a company allots equity shares through board meeting over and above the minimum paid up capital --- that is called first allotment and filing of form 2 with ROC becomes mandatory within 30 days of board meeting resolution for allotment.
Views of other learned members solicited.
Payal Jain
(CS)
(152 Points)
Replied 29 April 2010
Ya I am also agree with you, but Not confirmed.
Is it mentioned in any section of companies act, 1956..??
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 29 April 2010
According to me there is no particular section for this. But you may consider this as an established practice. Have you ever seen filing of form-2 for shared subscribed through MOA?
Wait for other opinions.
First allotment means the share subscribed in the MOA.
Because Untill the Company gets incorporated and in the first board meeting pass the resolution for the share allotment,
Till then it is considered to be subscribed and not allotted.
The shares so subscribed are allotted in the first Board meeting only.
So, Subscripttion to the MOA is the first allotment.
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