Dear Friends, Is there a statutory maximum period from the inception of a pvt ltd company before which the issued share certificates need to be issued to the directors? Also, should the money be deposited in the company's bank account by both directors prior to issuance of share certificates?
Company Secretary and Compliance Officer
[ Scorecard : 109113]
Posted On 10 May 2010 at 19:28
Time limit relating to issue of share certificate is governed by section 113 of the companies act, 1956.
As per section 113 Every company shall, within three months after the allotment of any of its shares, debentures or debenture stock, and within two months after the application for the registration of the transfer of any such shares, debentures or debenture stock, deliver, in accordance with the procedure laid down in section 53, the certificates of all shares, debentures and certificates of debenture stocks allotted or transferred.
RECEIPT OF PAYMENT FROM SUBSCRIBERS
Regarding receipt of payment from subscribers I would say ideally such amount should be deposited by the subscribers after incorporation of the co. in the newly opened bank a/c of the company and record the same in the first BM Minutes.
Alternatively, as there is no tracing (as far as ROC is concerned) of such amount, it may be deposited by them later. As a CS i would suggested you should opt I option to avoid any kind of future problem.
DATE OF ALLOTMENT TO SUBSCRIBERS AND DATE TO BE MENTIONED ON SHARE CERTIFICATE
Date of allotment to subscribers may be the date of incorporation of the company and the same date may also be used for printing on share certificate to be issued to subscribers.
Practically & legally this is very much possible. To conclude you may use Date of Incorporation of the company for the purpose of:
1.Printing on share certificate of subscribers
2.as date of Allotment to subscribers
3.For the purpose of filling the column in register of member to enter the name of subscribers.
Even if you receive the amount from subscribers after 6 months the date of deemed Allotment and date on share certificate would remain the same i.e. date of incorporation of the company.