Swati Sharma (TRAINEE) (328 Points)
29 March 2018Dear Members,
When Pvt. Ltd. Company can utilze funds through Private Placement Process.. As per Amendment Act,2017 it mentioned that ROC filing needs to be done then money can be utilized but the said Sec is not effective yet..
Hence as of now can funds be utilzed after passing BR for allotment?
Jatin Bajaj
(CS)
(2928 Points)
Replied 29 March 2018
Generally funds can be utilized after allotmnent of shares. When PAS 3 is filled with ROC and master data is updated.
Under Companies Amendment Act 2017, it is specfically highlited that Company can utilize the application money after the Complete allotment of shares, i.e. when PAS 3 is filled with ROC because as private Companie usually utilize the money immediately after receiving application money so to avoid the practice, govt has amended in the section and the application money so received shall be kept in seprate bank account .
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