is there any time limit for allotment of shares for a pvt ltd company. share application money is standing in the balance sheet since 31st march 2011.
ashish gupta ( student) (1922 Points)
09 December 2011is there any time limit for allotment of shares for a pvt ltd company. share application money is standing in the balance sheet since 31st march 2011.
Rashi Tiwari
(Company Secretary)
(131 Points)
Replied 09 December 2011
If share application money is received from abroad we need to allot shares within 6 months from date of receipt of money. As far as i know there is no such time limit for share appplication money received from India.
ashish gupta
( student)
(1922 Points)
Replied 09 December 2011
thanks for the prompt reply. application money is only from India.
is there any limit on use of the application amount in the business
Rashi Tiwari
(Company Secretary)
(131 Points)
Replied 09 December 2011
Share application amount can be used only when shares are alloted and it becomes capital of the company.
Dear professional friedns please correct me if i am wrong.
Parashar
(Company Secretary 2004)
(1013 Points)
Replied 09 December 2011
There is no time limit for allotment of shares in a private company, certainly it should be done before the end of the financial year so that it would not stand in your Balance Sheet.
ashish gupta
( student)
(1922 Points)
Replied 09 December 2011
but can we utilise the amount of share application money in business
ashish gupta
(Teaching for CA CS Students )
(281 Points)
Replied 10 December 2011
my ques.. wheather a pvt co.can become holding company of a public co.?
CA. Manmohan G Jhanwar
(Audit Manager)
(28 Points)
Replied 22 December 2011
What is the reference for this reasonable time which i spointed out in COmpanies ACt........................??Can u tell me??
CAclubindia
