Companies Act, 1956
Section - 69 - Prohibition of allotment unless minimum subscription received
AllotmentProhibition of allotment unless minimum subscription received.69. (1) No allotment shall be made of any share capital of a company offered to the public for subscription, unless the amount stated in the prospectus as the minimum amount which, in the opinion of the Board of directors, must be raised by the issue of share capital in order to provide for the matters specified in clause 5 of Schedule II has been subscribed, and the sum payable on application for the amount so stated has been paid to and received by the company, whether in cash or by a cheque or other instrument which has been paid.(2) The amount so stated in the prospectus shall be reckoned exclusively of any amount payable otherwise than in money, and is in this Act referred to as "the minimum subscription".(3) The amount payable on application on each share shall not be less than five per cent of the nominal amount of the share.[(4) All moneys received from applicants for shares shall be deposited and kept deposited in a Scheduled Bank— (a) until the certificate to commence business is obtained under Google Play store
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