I would like to know about one aspect of Company and its Share Capital-
1.If X is a private Ltd. Company and it is a service oriented company. They have share application money from relative party i.e their headquarters which is fund provider and the director himself. Now still the company has not alloted shares, so what is the liberty this company has in this respect ?
2.Company is also routing the transactions other than share application money from relative party's a/c in their books in the same account as headquarters is spending some funds for company's activities. Is it legitimate to do so?
22 December 2008
1. If the company recieves appln money in foreign currency, it has to allot within 6 months of dt of rect.
2. The other party, who has applied for share capital, is spending or making certain payments on behalf of the company, the comany shud maintain an account of the party, BUT share appln money should be kept in a seperate a/c named like. share application money a/c & should be displayed in Balance sheet along with share capital.
CAclubindia
